Cash Purchase - Money Laundering Source of Funds proof

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jimjames
jimjames Posts: 17,627 Forumite
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in Mortgages & endowments
I've seen a few threads about cash purchase previously but none seem to cover what is required for proof of funds. A thread on the investment board with someone needing to prove the source of the savings got me thinking what would be needed by a solicitor if you're buying a house for cash. The money has sat in an ISA for the last 8 years, would that be sufficient proof or would they need to see from beyond that date?
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  • amnblog
    amnblog Posts: 12,445 Forumite
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    edited 8 March at 3:32PM
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    An ISA is not 'cash', it is an investment

    'Cash' is Cash

    It has been there some time so the statement should be sufficient
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • amanda1024
    amanda1024 Posts: 409 Forumite
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    amnblog said:
    An ISA is not 'cash', it is an investment

    'Cash' is Cash

    It has been there some time so the statement should be sufficient
    Even the government calls them cash ISAs: https://www.gov.uk/individual-savings-accounts
    I had understood ‘investments’ to be stocks and shares and that sort of thing, rather than savings accounts
  • born_again
    born_again Posts: 14,474 Forumite
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    jimjames said:
    I've seen a few threads about cash purchase previously but none seem to cover what is required for proof of funds. A thread on the investment board with someone needing to prove the source of the savings got me thinking what would be needed by a solicitor if you're buying a house for cash. The money has sat in an ISA for the last 8 years, would that be sufficient proof or would they need to see from beyond that date?
    They could ask where the funds came from that were deposited into the ISA came from.
    So if you were putting the max £20K (not sure how long this has been the max) they could ask where that came from.
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  • kingstreet
    kingstreet Posts: 38,770 Forumite
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    amanda1024 said:
    amnblog said:
    An ISA is not 'cash', it is an investment

    'Cash' is Cash

    It has been there some time so the statement should be sufficient
    Even the government calls them cash ISAs: https://www.gov.uk/individual-savings-accounts
    I had understood ‘investments’ to be stocks and shares and that sort of thing, rather than savings accounts
    Yeah. That's simply to differentiate it from a stocks and shares ISA. It could properly be termed a deposit ISA although that might muddy the waters further in this neck of the woods.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Slinky
    Slinky Posts: 9,992 Forumite
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    When we bought cash, the solicitors wanted 6 months of statements.

    Try contacting some solicitors who you may want to use and ask them what proof they require.
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  • user1977
    user1977 Posts: 14,098 Forumite
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    edited 9 March at 5:52PM
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    Up to the solicitors, but would be odd for them to be interested in anything even older than you have, often they might just be looking 3 months back.

    And no, "cash" doesn't necessarily mean folding stuff! A "cash buyer" for a house is not turning up with a briefcase full of £20 notes...
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