Source of Funds for a UK Mortgage: What Iranian Buyers Need to Prove

Why everyone keeps asking where your deposit came from

When you buy a property with a mortgage, several parties are legally required to be satisfied that the money is legitimate: the lender, your solicitor and often your bank. These obligations come from the UK’s anti-money-laundering rules. They apply to everyone, but the checks are more intensive when money comes from outside the UK, and more intensive again when it comes from a country that is subject to sanctions.

That is why Iranian buyers often feel they are asked for far more paper than a friend buying with the same sized deposit. They are. The solution is not to resent the process but to prepare for it. A buyer who hands over a clean evidence pack on day one usually moves through underwriting faster than one who produces documents piecemeal.

Source of funds versus source of wealth

The two phrases are related but different, and it helps to know which question you are answering.

For smaller loans, the first may be enough. For larger sums or higher-risk profiles, expect questions about the second as well.

What to prepare for each type of source

The right evidence depends on where the money actually came from. Match your situation below and collect everything before you apply.

Savings from salary or employment

• Bank statements covering the period during which the savings built up, with highlighted entries for salary.
• Employment contract and payslips, or an employer letter confirming role and income.
• Tax or social security records where available.

Business income or profits

• Company registration documents and accounts for recent years.
• Tax returns or tax clearance documents.
• Bank statements showing dividends, drawings or profit distributions arriving in your personal account.
• An accountant’s letter summarising the above, where helpful.

Sale of a property or other asset

• The sale contract or deed, showing price, parties and date.
• Evidence the sale proceeds reached your account.
• Earlier evidence of how you acquired the asset.
• Any documents showing tax or fees paid on the sale.

Inheritance

• The will or inheritance certificate, in certified translation.
• Evidence of what was inherited and how it reached you.

A gift from a family member

Gifts are the most sensitive category. A lender may ask for a signed gift letter saying the money is a gift with no repayment, the donor’s ID, and the donor’s own evidence of where the funds came from. Importantly, some lenders restrict or refuse gifted deposits from donors outside the UK. For example, one buy-to-let lender’s published criteria states that gifted deposits are not accepted where the donor lives outside the UK or the funds come from abroad. Others accept them with additional evidence. Check the specific lender’s policy through your broker before you rely on a gift.

How to present the evidence so it reads clearly

Underwriters are busy, and they respond to files that tell a story without effort. A few habits make a big difference.

1. Write a one-page funds statement. A plain summary: how much, where from, when it was received, and which documents prove each step. Put it on top of the pack.
2. Use a timeline. List events in date order: salary received, property sold, currency exchanged, transfer sent, funds received in the UK.
3. Cover the full period. Lenders vary, but statements for several months are common. One lender’s international deposit form, for example, asks for evidence of savings held over a defined period. Ask your broker for the exact requirement.
4. Highlight the relevant lines. If a statement has hundreds of entries, mark the ones that matter and label them.
5. Translate everything. Documents not in English normally need a certified translation. Start early, since translation is often the slowest step.
6. Show the currency conversion. Keep the confirmation of the exchange rate and date, so the pound amount can be reconciled with the original amount.
7. Keep originals safe. Scans are usually fine at first, but you may later be asked for originals or certified copies.

Avoidable problems we often see

• Large unexplained deposits. A big credit into an account shortly before applying, with no paperwork, is the first thing an underwriter queries.
• Money passing through several accounts. Every hop needs explaining. Simple, direct routes are easier to evidence.
• Mixed funds. If the deposit combines salary savings, a gift and a sale, document each part separately.
• Missing translations. Documents in Persian without certified English translations cannot be assessed and will be returned.
• Inconsistent names or dates. Transliteration differences in names, or mismatched dates across documents, cause queries. Use one consistent spelling that matches your passport and explain any variation.
• Sending documents in pieces. Drip-feeding paperwork slows the case and can give the impression of a disorganised file.
• Planning around a gift before checking the lender’s policy. See above.

If an application has already been refused, our guide to why UK lenders decline Iranian applicants explains how to read the refusal.

All of these are within your control, which is why preparation is so effective.

A realistic preparation timeline

These timings are indicative. The right plan depends on how complete your records are today.

Example of a one-page funds statement

A short statement at the front of your pack saves an underwriter time and shows you are organised. This is an illustrative template. Replace the details with your own and attach the supporting documents it refers to.

Number your documents so every statement in the summary points to one specific page.

Translations and certification

If a document is in Persian, expect to need an English translation certified by the translator or a translation company, including a statement that it is a true and accurate translation, along with their details. Ask your solicitor or broker which standard they accept, since some firms have their own requirements. A few practical tips:

• Translate the whole document, including stamps and handwritten notes.
• Keep names spelt consistently with your passport.
• Translate dates and currencies carefully, and state the calendar used if a document uses the Persian calendar.
• Keep both the original and the translation together in your pack.

Evidence when you have sold a property in Iran

A property sale is one of the most common deposit sources for our clients, and one of the best documented, if you keep the right paperwork. Aim to have:

1. Evidence you owned the property: deed or title documents.
2. Evidence of how you acquired it: earlier purchase contract or inheritance papers.
3. The sale contract with price, parties and date.
4. Proof the proceeds reached your account: statements showing the credit.
5. Records of any tax or fees paid on the sale.
6. The currency conversion and transfer paperwork described in our transfer guide.

If any of these are missing, say so early. There are often alternative ways to evidence a source, but they take longer to arrange.

How 23rd Homes helps

We help you put the pack together and make sure it answers the questions underwriters actually ask. That includes a review of what you already hold, a checklist tailored to your sources of funds, and introductions to FCA-authorised brokers and money transfer firms who handle the regulated steps.

If you would like a second pair of eyes before you submit anything, book a free 15-minute call.

Frequently asked questions

This article is general information, written on 11 November 2026. Lender criteria, tax rates and sanctions rules change, so we check the current position with you on your free call.