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What Do Mortgage Companies Look for on Bank Statements?

what do mortgage companies look for on bank statements

It's no secret that applying for a mortgage involves a lot of paperwork and this can often feel quite stressful - especially when you're asked to provide bank statements to your mortgage lender and effectively open the doors to your personal finances.

So why do they even need this information? In this post, we'll be breaking down why mortgage companies want to see your bank statements - and what they're looking for.

Why do mortgage lenders ask for bank statements?

A mortgage is generally a big financial commitment - and from a lender's perspective, it can be a risk to lend such a large amount of money. So, they need to make sure that you're in a position to be able to pay back the amount you've borrowed - and that means taking a good look at your financial position and behaviours.

Your bank statements, along with other information that mortgage companies will look at, such as your credit report, will help them to build a picture of your financial situation. They can verify things like your income and your monthly expenses.

What do mortgage underwriters look for on bank statements in the UK?

So what are they actually looking for? What will make a mortgage underwriter more likely to accept your application?

Well, there are a number of things that will help to support your application:

Available funds for a deposit

There are a lot of upfront costs that come along with buying a home. Your mortgage company will want to be sure that you have the funds to pay for your deposit, along with other fees such as your legal costs.

You can afford the monthly mortgage payments

Your bank statements give a good insight into your monthly income and expenditure and will help lenders to check whether you have enough funds available to cover your mortgage payments.

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Bank statement problems that can impact your mortgage application

What are the warning signs to look out for on your statements that could cause your problems when you show them to your mortgage lender? Here are a few key problem areas to keep an eye out for:

Gambling costs

If lenders identify a potential gambling habit through your bank statements, this can be enough for them to decline you - even if you have a great credit score. 

The odd flutter shouldn't be a problem but if lenders feel that gambling costs are to frequent, this may cause issues with your application.

Regular use of your overdraft

This can be an easy trap to fall into. If you're going overdrawn on a regular basis (even if it's within the terms agreed with your bank), this can appear to a lender that you're struggling to manage your finances and can be a red flag when it comes to your mortgage application.

Payday loans

By their very nature, payday loans give the impression that you can't manage on your monthly income - and this in turn indicates that you may not manage your monthly mortgage payments.

Large deposits

Surely that's a good sign isn't it?? Well, it can also be a cause for concern to lenders, as large, unexplained deposits in your account could indicate money laundering.

Even regular deposits from family or friends can be a sign of financial commitment.

Do mortgage lenders check all bank accounts?

Generally, companies will want to see statements for your main bank accounts and you'll normally be asked to provide statements for the last 3 months.  This will differ from lender to lender though and it's a good idea to speak to a mortgage broker first because they'll have good insight into what different lenders will need.

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Ellen King

Absolutely delighted with the service we received from Dean. The advice we received was timely and thorough; the service provided went above and beyond our expectations compared to other mortgage advisors we have used in the past and the whole application process was made straightforward and stress free. Overall, an excellent value for money service that I would highly recommend.


Ellen King

2019-09-04T15:53:10+00:00

Ellen King

Absolutely delighted with the service we received from Dean. The advice we received was timely and thorough; the service provided went above and beyond our expectations compared to other mortgage advisors we have used in the past and the whole application process was made straightforward and stress free. Overall, an excellent value for money service that I would highly recommend.

Miss Knight

We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure working with you.  What is known to be a stressful time has been very smooth and I have yourselves to thank for this.


Miss Knight

2016-03-22T17:24:36+00:00

Miss Knight

We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure working with you.  What is known to be a stressful time has been very smooth and I have yourselves to thank for this.

Mr L

Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

2016-09-13T12:38:09+00:00
Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

Miss G

Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

2016-09-13T12:43:22+00:00
Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

Mr W

Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

2016-09-13T12:48:10+00:00
Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

Mr C

Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with sensible fees and interest rates.

2016-09-13T12:49:06+00:00
Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with sensible fees and interest rates.

16 hours ago

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