Anti-Money Laundering & Offer Substantiation

It’s really important — it’s a legal requirement that all estate agents go through when an offer is accepted. HMRC says we have to. And we don’t mess with HMRC. Luckily, it’s really easy to do.

Essentially, it’s just checking to make sure there’s no identity theft or money laundering taking place. Not identity thieving? Not money laundering? Then this should be smooth sailing.

You’ll just need some documents to help move things along.

When you’re buying a property, there are a few documents that must be provided — we’ll need them from anyone going on the property deed.

• Certified ID

• Certified proof of address

• Proof of deposit

• Proof of mortgage

“Certified” documents mean that the original document has been seen by a professional — and they’ve confirmed that everything on it is true and correct. The Credas app can do that for you or you can have someone you know do it. There are a few different occupations who can do this for you:

• Mortgage broker

• Solicitor

• Teacher

• Managing Director

• Nurse/Doctor

The Post Office is also able to certify your documents for you.

Don’t worry though – We can too!

Getting your documents certified can sound complicated, but don’t worry – we have a really simple solution.

If your documents are certified by a person on the above list – great!

If not, you can come down to your local Homesure Branch and we can certify the documents for you!

If that’s too much hassle, we have an online system that can do all of this – for the charge of £3 + VAT (£3.60) per person.

• Simply inform your agent that you’d like to do this, an invoice will be sent to you, and once paid – we’ll sort everything out on our end!

There are acceptable forms of ID — either by showing one valid photo ID or two valid IDs that don’t have a photo. In either case, the whole document will have to be visible, with nothing crossed out. Here are the types of documents you can use.

• Full UK Passport

• Full Overseas Passport

• UK Photocard Driving License

• EU Photocard Driving License

• EEA Member State ID card

• Biometric Residence Permit

• UK Firearms/Shotgun License

• UK Military ID card

Whichever option you choose to use, it must be valid, in-date, issued by the correct authority, and signed if necessary. Most people will be able to use one of these documents, so the process should be straightforward.

If you use a non-photographic ID, there are more specific requirements.

Bank or Building Society Statement

• Dated within the last three months

• Original statement

• No downloads

• Full document

Benefits or Pension Notification Letter

• Dated within the last three months

• Full document

Blue Disabled Drivers Pass

• Both sides of document

• Stamped by council

• In date

Council Tax Bill

• Covering the current year

• Issued this year

NHS Medical Card/Certificate

• In date

• Valid

National Insurance Card

• Valid

Utility bill, statement, or letter from a supplier

• Original

• No downloads

• Dated within the last 3 months

• Full document

UK birth certificate

• Original document

• Valid

Every buyer needs to provide certified proof of address, but there’s a range of ways you can do this. You only need to provide one, but they each have their own requirements.

Bank or Credit Card Statement

• Dated within the last three months

• Original statement

• No downloads

• Full document

Council Tax Bill

• Covering the current year

• Issued this year

Current Mortgage Statement

• Dated within the last three months

• Original statement

• No downloads

• Full document

Current TV Licence

• In date

• Issued this year

UK Driving Licence

• In date

• Valid

• Signed

Homeowners Insurance Policy

• In date

• Original document

• No downloads

• Full document

Utility Bill (Gas, Electric, Water, Broadband)

• Dated within the last three months

• Original statement

• No downloads

• Full document

Tenancy Agreement

• Dated within the last six months

• Signed

• Executed

Letter from NHS

• In writing

• On letterhead paper,

• Dated within the last 3 months

• Confirming the address of the customer

Letter from Bank

• In writing

• On letterhead paper,

• Dated within the last 3 months

• Confirming the address of the customer

Letter from Employer

• In writing

• On letterhead paper,

• Dated within the last 3 months

• Confirming the address of the customer

Housing Benefits Documentation

• Dated within the last three months

• No downloads

• Full document

There are a few forms of proof of address that you can’t use:

• HM Revenue & Customs documents

• Letters from accountants or solicitors

• Mobile phone bills

• NHS Medical Card

You can’t use the same document for proof of address and proof of ID. You’ll have to use separate documents for each. 

After you prove that you are who you say you are, you also have to prove that you have the funds to buy the property — and that they come from legitimate sources. Again, this sounds a little intimidating, but it’s really just a bit of paperwork.

There are a few different ways you can prove you have the funds, depending on how you’re paying for the property. We’ll go through each one in a moment, but the different options are fairly straightforward.

• New mortgage

• Mortgage transfer

• Cash from a sale

• Cash

• Gifted funds

If you’re getting a new mortgage, you should have an ‘Agreement in Principle’ (AIP) — it might also be called ‘Mortgage in Principle’ (MIP) or ‘Decision in Principle’ (DIP).

You’ll just need a certificate or statement from the lender that says the amount that they would lend ‘in principle’ based on your current position, dated within the last 3 months. You can also get confirmation from your mortgage broker.

You’ll also need to confirm the loan to value ratio — a fancy way of saying how much of the house you’re borrowing. You just need to show that between the deposit and the mortgage, you can cover the full purchase price of the house.

If you already have a mortgage, you can also show proof of a ‘Mortgage Transfer’ — that you’re moving your mortgage from your last property to this one. Just get confirmation from your lender that they’re happy to do this.

Not sure where to start? We offer simple, straightforward mortgage advice — for free.

You’ll also have to provide bank statements for the last month and proof that you have enough funds to cover the deposit.

When showing proof of mortgage, the document must show:

• Date

• Lender

• Name(s) of the buyer(s)

• Agreed loan amount

In a lot of cases, you might be relying on the sale of your current home or another property to put towards your purchase. You’ll just need to provide proof outlining the agreed sale price (a memorandum of sale), as well as a copy of the mortgage redemption statement showing how much equity remains in the property. You can ask your solicitor to confirm the sale price and the amount outstanding on the mortgage.

This memorandum of sale must show:

• The name of the Agent / Solicitor

• The property address

• The name(s) of the vendor(s)

• The agreed offer amount

A mortgage redemption statement must show:

• The lender

• The date

• The name(s) of the mortgagor(s)

• The outstanding mortgage value

If you have the funds in cold, hard cash, then congrats — you’ll just have to show you can cover the total cost of the property (and confirm where it came from).

Cash can mean a lot of different things.

• Inheritance

• Bank statements

• Divorce settlement

• Insurance claim

• Shares/Bonds

Bank statements can be in the form of a screenshot or photograph, but must show:

• The bank or building society

• The name on the account

• The current balance/funds available

• The date to prove its recent

Proof of shares or bonds should be provided in the form of certificate or statement and show:

• The holder’s name

• The value

If you’re getting a little help from family or friends, they’ll just have to provide a few documents.

• A gift letter –  This should include both of your names, the date, and the amount being gifted. It can be emailed, but it has to come straight from the gifter’s account.

• Photographic ID – This does not need to be certified

• Evidence and source of the funds available – Proof they have the funds, in the form of bank statements, investments, bonds, or inheritance.

It’s a lot of information to take on board, but you’ll only have to worry about a handful of documents — however you choose to verify your identity and the way you plan to pay for your home. Have any questions? Don’t hesitate to get in touch.