Best format for gathering your bank statements for Mortgage Applications including how to get statements with https:// on them.
In our experience, one of the biggest causes of delay when gathering documentation for mortgage applications is gathering bank statements which should be pretty straightforward. However, as so much has now moved online applicants are increasingly finding it more difficult to abide by the rules set out by the mortgage lender to gather the bank statements in a correct format. In this article I will try to explain some of the most important points when gathering your bank statements four mortgage applications.
FAILURE TO PRODUCE BANK STATEMENTS WILL DELAY YOUR MORTGAGE APPLICATION
- The number one delay to mortgage applications is the failure to provide accurate bank statements for the last 3 months.
THE ONUS IS ON YOU
The responsibly rests with you to make sure you get this is right.
- If you want to produce these online then you will need to speak to the bank’s technical support as required.
- If you are going into a branch to print them off they must have the branch stamp.
WHY ARE THEY NEEDED?
Mortgage lenders look to bank statements for a variety of reasons, the main ones are:
- conduct of finances
- income and expenditure
- large / unusual credits
The statements need to cover the last 3 months.
- 3 months’ statements means 3 full calendar months and not a day less. If a day is missing the lender will automatically think you are trying to hide something.
- The statements must be the most recent available to you.
- The sequence 3 month duration must be consecutive. For example Jan, Feb and March NOT Dec, Feb and March.
- Sometimes statements (particularly online ones) only show the dates of transactions and not the period which they have been produced over. For example you may be required to evidence up to the end of January and the last transaction is the twentieth so that appears to be the date you have run it to. In this instance you will need to provide an email explaining the period the statement was run over to us.
The format of bank statements is VERY important us the Lender needs certain they are authentic. The key area that trips applicants up and cause delay are limited data on the statement.
- Online statement without a https web script on the page.
This evidences the site is genuine and secure. The https web script is normally at the bottom of the page but can be at the top. Depending on your bank you may have to try various print functions for the https webscript to appear. One solution is to print using the date range of recent transactions. If you are struggling to obtain this you will need to contact your bank.
- – Shortened account number – The number is obscured for security, for example XXXX1234.
- – Account holders name missing.
- – Different format of name on the account to that on their passport. If this is a maiden name it is advisable to provide a copy of your marriage certificate.
– Branch duplicate print out without the bank stamp added to it to authenticate it.
– Mini statements from ATM are inadmissible evidence to Lenders.
WHAT DO LENDERS WANT TO SEE IF THE STATEMENTS
- If you are employed they will look to make sure the payments are around the same time in the month and that the employers name is next to the credit. If your employer uses a different trading style for the credit then this should be recorded in the Fact Find. The entries should match the same date and amount as the payslips.The above would apply to a self-employed applicant who is contracted to one source and are looking to use their daily rate.If you are fully self-employed then the lender would expect to see some income credits even if they are indifferent in size and frequently.If you are a landlord that would expect to see the payments from your tenants or letting agent. The entry should match up with the tenant/agent on the tenancy agreement.Large deposits over £1,000, separate from income, will need a written explanation to us by email. This is for money laundering purposes.
If you are currently a homeowner then they would expect to see the following debits electricity bills, gas bills, council tax, water and communications (landline / mobile etc), loan and mortgage payments.If these are paid in a frequency other than monthly or quarterly i.e. are not evidenced by 3 months bank statements an email explaining this will be required.
HOW MANY ACCOUNTS DO I HAVE TO PROVIDE STATEMENTS FOR
The standard position is your current account for each applicant. If you have direct debits or standing orders from other accounts then they will be needed too.
The birth online banking has complicated matters. It is common for clients to switch between accounts for higher rates of interest at the press of a button. The lender will want to see a full audit trail of all monies over a 3 month period, even if internal transfers. So if the current account mentions another entry from another account you own then 3 months statements will be needed from that account too.
If your income is directly paid into a business account these statements will be required too.
If you are purchasing and hold the deposit in a separate account this will need to be evidenced. Even if this is a parent’s account or anyone else contributing towards the purchase.
For more information on getting a mortgage please complete the online enquiry form on this page or alternatively call us on 020 7993 2044
Author: Richard Stokes
Richard Stokes is a partner at Niche Advice who are whole of the market Independent Finance Brokers In London. His role is very much focused on on Mortgage and Insurance products.