What History of Bank Statements Do I Need for a Mortgage Application?

If you've recently switched bank accounts or don't have a long banking history, you might be worried about the banking history your mortgage lender will need! Here we'll explain the standard requirements and how they may vary according to your circumstances.

About your mortgage

Error: Yearly income income must be between £1 and £10,000,000.

Error: Regular bonus must be between £1 and £10,000,000.

Based on your yearly income, you may be able to borrow:

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Most lenders will let you borrow 4.5 times your annual salary so, as long as you have a standard 10% deposit, you should be able to borrow this much.

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Depending on your personal circumstances, some lenders may let you borrow 5 times your salary.

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Lenders usually cap the amount they lend at 5.5 times your salary, so it’s unlikely you’ll be able to borrow more than this.

This calculator is an estimation of how much you could borrow. If you’re ready to take out a mortgage, speak to a Revolution brokers to see what options are available.

What History of Bank Statements Do I Need for a Mortgage Application?

Most mortgage applications will require access to your bank statements, but if you have other ways to prove your income, such as payslips or P60s, they might not be necessary.

A lot depends on what sort of mortgage you are applying for and the lending criteria for your chosen lender.

Here we'll run through the typical requirements for bank statements when applying for a mortgage. If you have any difficulties with providing a financial history, give the mortgage advisors team a call on 0330 304 3040, or email at info@revolutionbrokers.co.uk, and we'll help you find suitable solutions!

Why Do I Need Bank Statements to Apply for a Mortgage?

The primary reason a mortgage lender might ask for bank statements is to help them assess your income and outgoings to check you can afford the repayments.

Affordability is an important metric. Even if you only need to provide basic information for the initial application, the underwriter will usually ask for more records to verify the details you have given.

Usually, the underwriter needs to check your bank statements for:

  • Funds to pay your deposit and application fees with.
  • Proof that you have sufficient income to cover the mortgage repayments.
  • A debt to income ratio, which shows your level of debt vs your earnings.
  • The sources of your deposit - with the lender tracing back your statements to verify where the deposit has come from.

Gifted deposits from close family members are usually acceptable. Lenders will often want to check where your deposit has come from to ensure it is a verifiable source.

Can A Mortgage Lender Reject my Application after a Bank Statement Review?

There might be some cases where a lender isn't happy with something they find on your bank statements. For example:

  • There are cash deposits that cannot be traced and could be money laundering.
  • Your deposit funds come from overseas or are a gift from an employer, which indicates possible fraud.
  • Income is received as proceeds from gambling.
  • You have a history of taking out payday loans.

Having any of these circumstances doesn't mean you can't get a mortgage. However, it does mean that you should consult an experienced broker to manage the application process for you to avoid being rejected.

Why Revolution Brokers?
  • Whole of market brokers

  • Mortgage that suits you

  • On time customer support

FAQs

How does our broker-matching service work?

Usually, the lender will ask you to fill in some forms explaining where your deposit is coming from. They then cross-reference this with your bank statements to verify that the source is as you have reported.

Not on their own, no. Bank statements evidence how much you earn and how much you spend, but aren't the sole documentation that lenders rely on to calculate your eligibility.

Yes, probably. Most contractors or self-employed mortgage applicants will be asked for one to three years worth of accounts or tax returns, as well as bank statements.

The only party involved in the application that needs to see your bank statements is usually the mortgage lender and their underwriters. Brokers and mortgage advisors usually don't need this information unless we are collating your documents to apply on your behalf.

It's unlikely since all mortgage providers will need some evidence of your income. However, if you cannot provide bank statements, you might be able to find a way around this by offering payslips, tax returns or other documents.

Most lenders will ask for bank statements for the last three months. In some cases, they might ask for up to six months of financial history.

If you're concerned about proving your financial position or can't supply bank statements for the last few months, you will likely still be able to find a mortgage provided you have other paperwork to show your earnings.

Contact Revolution on 0330 304 3040, or email us at info@revolutionbrokers.co.uk for more information about alternative ways to evidence your income.

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FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

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