Source of Funds Letter Template (UK): Free Generator
If your solicitor or bank has asked where your money came from, that is a source of funds check — an anti-money-laundering requirement, not suspicion. The letter below declares it cleanly; the evidence list underneath is what they will ask for next.
At a glance
- Who asks
- Solicitors, conveyancers, banks
- Why
- Anti-money-laundering law — they must ask
- What it is
- A declaration plus evidence
- Not the same as
- Proof of funds (showing the balance)
✍️ Source of funds letter
[Your full name] [Your address] 18 August 2026 To whom it may concern Re: Source of funds — a property purchase I am writing to confirm the source of the funds, totalling £[amount], being used for a property purchase. The funds originate as follows: [Describe each portion of the money and where it came from — savings from employment, sale of an asset, inheritance, gift, investment proceeds — with amounts.] I can provide supporting evidence for the above, including bank statements and relevant documents, on request. I confirm the funds are legitimately mine and are not the proceeds of crime. Yours faithfully, [Your full name]
Assembled in your browser — nothing you type is sent or stored anywhere. A template is a starting point, not legal advice: adjust the wording to your situation, and where the page mentions statutory rules, check them against your own case before sending.
Source of funds vs proof of funds
Two different requests that arrive in the same email:
- Proof of funds = showing the money exists — a bank statement with the balance.
- Source of funds = showing where it came from — the history behind the balance.
A statement showing £45,000 satisfies the first and says nothing about the second. The letter above handles the declaration; the evidence does the convincing.
The evidence, by where your money came from
- Savings from salary — bank statements showing the build-up over time, plus payslips or an employment reference. The pattern matters more than the balance.
- Sale of a property — completion statement from the solicitor who acted on the sale.
- A gift — a gifted deposit letter from the giver, plus their ID and a statement showing the money leaving their account.
- Inheritance — grant of probate and a letter from the estate's executor or solicitor.
- Sale of shares or investments — the platform's transaction statement showing the sale and withdrawal.
- Money from overseas — the same evidence from the origin country, and expect the checks to take longer; start early.
The common thread: documents from a third party beat your own say-so. A conveyancer is legally required to establish the origin of every pound in a purchase — a prepared file can genuinely save a transaction weeks, as our guide to how long a mortgage application takes shows.
Frequently asked questions
What is a source of funds letter?
A short signed declaration of where specific money came from — savings, a sale, a gift, an inheritance — given to a solicitor or bank to satisfy anti-money-laundering checks, and backed by documents for each source named.
Who needs to write a source of funds letter?
The person whose money it is. If part of a house deposit is a gift, the giver additionally provides their own gifted deposit letter and evidence.
What counts as proof of source of funds?
Bank statements showing money accumulating, completion statements from sales, probate documents, investment platform statements — third-party paper trails matching the amounts you declare.
Why is my solicitor asking where my deposit came from?
Because the law requires it. Conveyancers must establish the source of purchase funds under money-laundering regulations; refusing or delaying just stalls your own purchase.
General information only, not financial or legal advice. Templates are a starting point — adjust them to your situation, and take advice where the stakes justify it.
