Source of Funds

By Justin Whitelock

Founder of Mortgage London (a trading style of City Finance Brokers Limited, authorised and regulated by the Financial Conduct Authority, FCA No. 766295)

Where money for transactions originates, requiring a clear paper trail showing how the money was built up and transferred.

Related glossary terms

Affordability Assessment

The lender’s evaluation process examining whether borrowers can realistically maintain payments, considering income, committed expenditure, credit profile, and stress-tested affordability at a higher assumed interest rate.

Foreign Currency Income

Income paid in non-sterling currencies, with lenders applying a discount to the converted sterling figure to reflect currency volatility.

Arrangement Fee

A charge by some lenders for setting up a mortgage product, either paid upfront or added to the loan amount, affecting overall cost calculations.

Special Purpose Vehicle (SPV)

A limited company set up specifically to hold property investments rather than carry on a wider trading business.