Deposit & LTV · 6 min read
Cash deposits and evidencing where your deposit came from
In short
The question with any deposit is not whether money is allowed, but whether where it came from can be evidenced. Cash paid into an account is harder to evidence than a transfer, because the statement entry shows the deposit but not the origin. The practical response is record-keeping: know where each part of your deposit came from, hold something that shows it, and be able to describe it in a sentence. What any individual lender accepts as evidence is its own policy, and we do not publish lender criteria or comment on amounts.
Who this is for
- Anyone whose deposit includes money that was paid in as cash
- People saving from work that is partly paid in cash
- Applicants organising deposit evidence before an application
Key points
Source of funds is an evidencing question
MCOB 11.6 requires a lender to evidence the income it takes into account, and firms carry separate legal duties around identity and the origin of funds. The common thread is that assertions are not enough; records are.
A cash entry shows the deposit, not the origin
A statement line reading 'cash in' is a fact about your account, not an explanation. Whatever links that money to its source is the useful thing to keep.
Build the record as you go
The easiest time to evidence where money came from is when it arrives. Reconstructing it later, from memory, is the hard version of the same task.
Different parts of a deposit can have different sources
Savings, a gift, a bonus and proceeds from a sale are separate stories. Keeping them separate in your notes — and where practical in your accounts — makes each one describable.
Gifts are a distinct case
A gifted contribution raises questions about the donor as well as you. That has its own guide rather than being folded in here.
We cannot tell you what is acceptable
What evidence any lender requires, and what it will accept, is set by that lender. Ask the lender or a suitably qualified FCA-authorised mortgage adviser.
Exceptions and things that vary
- Some legitimate income is genuinely received in cash. Nothing here suggests otherwise; the issue is evidencing, not legitimacy.
- Where money came from abroad, additional records may be relevant. Ask before you assume what will be needed.
- No source consulted sets a holding period, an amount threshold, or a required form of evidence.
How to work through it
Break your deposit into its parts
Our suggestion: write down each component and its origin — regular saving, a specific payment, a sale, a gift — with approximate amounts and dates.
Find the record that shows each origin
Our suggestion: for each part, identify what evidences it: payslips, a sale document, statements showing a transfer, or correspondence.
Deposit cash promptly and in identifiable amounts where you can
Our suggestion: paying cash in close to when you receive it, rather than in accumulated lumps, keeps the link between income and deposit visible in your own records. This is a record-keeping habit, not a rule from any source.
Write one line per component
Our suggestion: a short factual sentence for each part of the deposit. You are describing facts, not making a case.
Ask what evidence will be needed
Our suggestion: ask the lender or adviser what they require for each element before you gather anything else.
Illustrative example (not a real case)
Imagine a deposit made up of three years of regular saving, plus a sum received in cash for occasional weekend work. The saving is visible in statements. The cash is not obviously linked to anything. Writing down what the work was, when it was paid and what it corresponds to on the statements turns an unexplained entry into a describable one. Illustrative only.
Illustrative only. Figures and situations in examples are made up to show a method. They are not typical, not a benchmark and not a prediction of any outcome.
What not to assume
- Do not assume cash is unacceptable. The issue is evidence, not permission.
- Do not assume there is a period after which a cash deposit stops being asked about. No source we consulted says so.
- Do not assume a verbal explanation will be enough.
- Do not assume the rules that apply to gifted deposits apply here, or vice versa.
- Do not assume this page predicts what any lender will accept.
Questions for a qualified adviser
We cannot answer these for you, and we do not introduce or recommend advisers. Take them to a suitably qualified FCA-authorised mortgage adviser of your own choosing.
- What evidence do you need for each part of my deposit?
- How would you like cash deposits explained or documented?
- Is there anything you would want me to gather now rather than later?
Build my document checklist
A printable starting list of the paperwork commonly requested.
Related reading
A resource that may help you organise the next step
Optional educational preparation resources. Nothing here is mortgage advice, a lender or product recommendation, an eligibility assessment or a prediction of whether an application would be accepted.
- Mortgage Preparation Starter Checklist — free
A one-page starting point for the paperwork most people are asked for.
- Readiness checker
Eight broad preparation questions. It never says whether you would be eligible, approved or declined.
- First-Time Buyer Preparation Planner — £7.99
A preparation resource, not mortgage advice or a lender recommendation. Purchases are not switched on yet.
Sources
No statistic, regulator citation or third-party claim is published until its source is verified. Unverified entries are shown as placeholders.
Written by
Before You Apply editorial
Written by the publisher's editorial function, not by a named individual and not by a mortgage adviser. Before You Apply is not FCA authorised.
Reviewed by
Independent reviewer — to be appointed
No independent reviewer has been appointed yet. No review, qualification, FCA status or endorsement is claimed for this content.
- Last fact-checked 2026-08-30
- Not yet independently reviewed
- Next review due 2027-02-28
Disclosure: this guide is educational. Before You Apply receives no payment for mentioning any lender, product or firm, and none are named.
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