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Bank statements for mortgage

Are bank statements for mortgage loans needed in the UK? Get the right advice on this here.

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By Pete Mugleston  | Mortgage Advisor Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 10th December 2019 *

Are bank statements needed for a mortgage application?

It’s easy to understand why there can be confusion around mortgages and bank statements. Mortgage lenders’ eligibility criteria vary, and your individual situation also plays a role when it comes to what a lender will require when assessing your mortgage application. 

For example, some mortgage lenders may require every applicant to support their mortgage application with bank statements, whereas others may only require them under specific circumstances.

Read on to find out more about mortgages and bank statements, or use the links to jump ahead to the information you want:

If you prefer to find out if you’ll need bank statements to support your mortgage application, make an enquiry and we’ll introduce you to one of the expert brokers we work with. They’ll be happy to answer all your questions and help you understand what you’ll need to get the mortgage you want.

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Why do mortgage lenders ask for bank statements?

Mortgage lenders who want to see your bank statements will use the information to help them assess whether you can afford the mortgage you are applying for.

They will review your bank statements to confirm your income and regular monthly outgoings with a view to how your financial commitments will affect your ability to repay your monthly mortgage payments.

As well as allowing them an overview of your financial profile, underwriters have far stricter policies in place than they once had. Because of this , they like to identify the source for every addition to your bank / savings account to ensure that no money laundering or other fraudulent activity has taken place.

Checking your bank statements is therefore a common procedure for many mortgage providers because it can be an easy and efficient way to ensure that your funds have come from a legitimate source. 

If any of your income deposits look suspicious in any way, mortgage lenders will pick up on this and ask you to trace its origin.

What do mortgage lenders and underwriters look for in your bank statements?

Mortgage lenders may want their underwriters to check through bank statements for various reasons, depending on their eligibility criteria. 

The majority of providers who require bank statements will check the following:

Availability of funds

Bank statements are the best way for mortgage lenders to ensure you actually have the funds required for your deposit, as well as any other initial fees. Some mortgage providers have additional cash-reserve requirements, and will check your bank statements to confirm you have the funds to cover a certain number of initial monthly repayments.


Bank statements are also used to verify your monthly income and outgoings, therefore giving a good indication of your affordability. Affordability is calculated by dividing monthly outgoings by income, and multiplying it by 100 to get your debt to income (DTI) ratio. The lower your DTI the better, because it means you have more disposable income.


All deposits must be sourced. Bank statements enable mortgage companies to trace back deposit transfers. In most cases, this is easily verified as it’s likely the funds will come from the buyer’s regular income account. However, with other deposit sources you are likely to have to provide evidence of where funds originated from.

Tracing gifted deposits

While the majority of mortgage lenders are happy to accept gifted deposits from close family members, many have far stricter requirements when it comes to more distant family or friends. Bank statements are a good way to help trace the gift to its source by also requesting statements from the gift provider.

How your bank statements can cause your application to be declined

Some people want to know how closely mortgage lenders look at bank statements, and what might ring warning bells. If your lender is not satisfied with any of the factors mentioned in the section above, that may inhibit your likelihood of being accepted for a mortgage.

Other impacting factors include:

  • Untraceable cash deposits: These are a big no-no for most lenders due to the risks of money laundering.
  • Employer-gifted deposits: Again, due to the risks of fraudulent activity.
  • Funds from overseas savings: It can be harder for providers to trace the origin of overseas savings, although some can be more flexible.
  • Gambling funds: While one-off wins may be accepted to finance a mortgage, regular evidence of gambling on your bank statements will likely be treated with more suspicion.
  • Payday loans: Payday loans are generally another big no-no for lenders, even if they’ve already been paid off. Evidence of other forms of unsecured borrowing are also risky, but some providers can be more flexible.

If you’re worried that any of the above issues may harm your chances of being approved for a mortgage, don’t hesitate to get in touch. We’ll refer you to one of the expert brokers we work with, ensuring that they have the right specialist expertise to help you further.

Frequently asked questions

In this section, you’ll find additional information about mortgages and bank statements, based on the questions we hear most often on this topic.

How do mortgage companies verify bank statements?

Mortgage lenders will verify the financial information that you provide to them. Your lender might phone your bank to verify your account and statements. However, most lenders will complete a proof or verification of deposit (POD/VOD) request forms and ask your bank to verify your account this way. Most banks provide downloadable forms for lenders on their websites.

Are bank statements enough to prove how much you earn for a mortgage?

No, a bank statement will be used to verify your income and your outgoings, but they are not the only factors that affect your affordability or mortgage eligibility.

Will I have to provide bank statements to get a mortgage if I’m self employed?

If you own your own business or are a contractor, you may be more likely to have to provide bank statements. Most mortgage lenders will also request at least 1-3 years’ worth of accounts to prove you have a reliable source of stable income.

You can read more in our guide on mortgages for self-employed people.

Do mortgage brokers or advisors need to look at my bank statements?

Some will authorise a mortgage without bank statements, but as the policies are so strict these days, it is quite likely that they will ask to see them.

Can I apply for a mortgage with no bank statements?

Not every single mortgage provider will require you to submit bank statements, but it is common.

Which mortgage lenders ask for bank statements?

A lot of banks ask you to submit your statements for assessment, but not every lender will need you to.

For example, mainstream mortgage lenders Halifax and Santander have recently confirmed that they do not ask to see bank statements as part of standard mortgage applications. However, they stipulate that they have a number of other tools to assess a customer’s creditworthiness.

How many months of bank statements do I need to apply for a mortgage?

Usually, mortgage providers will require the most recent three months of bank statements.

How far back do mortgage lenders look at bank statements?

As above, most providers will request the 3 most recent months of bank statements. A handful may request 1 or 2 month’s worth, while others might ask for up to 6 months.

Why you should speak to a whole-of-market mortgage broker

We’ve helped over 120,000 find the right mortgage by introducing them to a broker, even those who may have been declined a mortgage or have a bad credit history.

In fact, our customers consistently rate us 5 stars on Feefo, mainly due to our high levels of service, but also because we offer a 5-star service with access to expert brokers who are:

  • Whole of market.
  • Have a working relationship with all mortgage lenders, not just a select few.
  • Already know the lenders to go to as they successfully arrange these already.
  • OMA Accredited advisors.
  • Have completed a 12 module LIBF accredited training course
  • Are experts on the subject of mortgages and bank statements

Speak to an expert

If you want to know more about the role bank statements play in a mortgage application or are ready to press ahead and apply, make an enquiry. We’ll introduce you to a whole-of-market broker who could save you time, money and potential disappointment. 

We don’t charge a fee, and there’s no obligation or marks on your credit rating.

Updated: 10th December 2019
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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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