Financial planning for a deposit in the United Kingdom: how to prepare for a 5–25% deposit
The initial deposit in the United Kingdom is one of the most important components of buying a home. The amount usually ranges from 5–25% of the property value, but the strategy for saving and formalising depends on the source of funds, the type of financing and your tax residency.
Legal and financial planning for the deposit helps not only to prepare the required amount, but also to avoid tax, currency or banking complications that could delay completion or even derail the deal.
Main sources of funds for a deposit in the UK: what is allowed and how to register it correctly
A deposit does not necessarily have to be formed solely from your own savings. It is important to understand what sources of funds are accepted by banks, what is subject to verification, and what documents you need to have.
Before forming the deposit structure, a lawyer assesses the financial origin of the amount, tax implications, the need for currency supervision and the requirements of a specific mortgage lender.
The most common sources of deposit:
- Salary/business income — must be confirmed by bank statements, payslips, declarations.
- Sale of another property — requires a purchase agreement + confirmation of receipt of funds.
- Gift from a relative (gifted deposit) — requires a Gift Letter + confirmation of the source from the donor.
- Investments or dividends — banks require detailed tracking of income and source of assets.
- Inheritance/long-term savings — requires documentary evidence (will, probate, bank statements).
After analysing the situation, we form a legal and logical structure for the bank or broker — one that meets the requirements of AML and regulators.
Legal and tax risks when forming a deposit in the United Kingdom
Banks in the United Kingdom strictly check the origin of funds in accordance with AML policy. A mistake at this stage can result in account blocking or mortgage denial.
Here are the main risks to look out for before making a deposit:
- Lack of a clear chronology of the origin of funds.
- Errors in supporting documents (inconsistencies, unofficial translations).
- Transfers from accounts that do not belong to the client.
- Discrepancy between the source of the deposit and the declared profile at the bank.
- Use of cryptocurrency without conversion into traditional assets (or without documentation).
Our legal support reduces these risks to zero, ensuring a transparent and secure deposit strategy.
How to plan the deposit amount and residual costs
When planning a deposit, it is worth considering not only the deposit amount itself, but also all the additional costs that arise in the process of the transaction: mortgage, insurance, legal services, taxes.
Here's what you should definitely consider when planning your finances:
- Deposit amount (from 5% — minimum for Help to Buy, to 25% — optimal level for favourable terms).
- Mortgage arrangement fee, valuation, broker fees.
- Stamp Duty (SDLT), especially when buying a second property or for non-residents.
- Legal support: conveyancer services, checks, land registry.
- Additional costs: maintenance, repairs, agency services, insurance.
After the consultation, you will have a realistic picture of the total cost of the purchase and an understanding of what funds, in what form and when they should be ready.
Advantages of working with a consultant

We structure the sources of funds in accordance with the bank's requirements

We assess the tax implications of the amounts received

We agree on a package of documents with the broker or lender

We prepare official explanations (LoE) if necessary

We accompany you until the funds are deposited into your client account
Frequently asked questions about planning the deposit amount based on the cost of housing
Question
Can I make a deposit from several sources at once?
Answer
Yes, but each source must be documented. The bank analyses the origin even in the case of a mixed deposit (e.g. partly a gift, partly a salary). We structure this in a legally correct manner.
Question
Do banks accept deposits in foreign currency when buying property in the UK?
Answer
Possibly, but often the transfer must be converted into pounds. We accompany the transaction to avoid currency control violations on the Ukrainian side or tax issues in the UK.
Question
Does the form of the deposit affect mortgage approval?
Answer
Yes. If the deposit comes from a non-standard source (e.g. cryptocurrency, offshore, gift from a friend), the bank may refuse. We agree on the structure in advance with a broker or lawyer.
Question
What if the deposit comes from abroad?
Answer
It is necessary to anticipate currency control, transfer times, AML checks and prevent blocking. We coordinate everything: from the source to the client account in the UK.
ConclusionPlanning a deposit of 5-25% of the cost of the property is not only a matter of financial confidence, but also of clear banking requirements and deadlines. Without professional support, clients often find themselves in a situation where they have the funds, but the bank blocks the transaction. We help structure every step — from preparing documents to actually depositing the amount — so that the purchase is safe, fast and stress-free.