Bank statements for mortgage application

LondonBuyer2024

Hi all, I’ve seen the above which statements that Halifax no longer need bank statements for mortgage applications, but this is contrary to what their website says, can anyone confirm or debunk?

Thank you!

ACG

Some lenders do not usually ask for bank statements as standard for proof of employed income. 
However:
- They may want statements for evidence of other income (maintenance, benefits etc),
- They may want statements for evidence of commitments,
- They may want statements to AML purposes,
- They may, despite saying they do not necessairly need them want them for proof of income. 

Basically, if you are hoping they do not pick up on something on bank statements if you are employed, low LTV and low risk - its unlikley they will ask for statements. But it is not a guarantee. 

What is the issue with the statements? There may be better options out there than hoping the lender does not ask for them. 

LondonBuyer2024

I use my arranged overdraft monthly at the moment as I have been focussing on paying down credit cards. I have now got these to under 50% utilisation, but can’t really wait to clear the arranged OD to apply. The OD is cleared in full every month, and all of my credit reports show the OD usage as £0.

Hoenir

LondonBuyer2024 said:

 I have now got these to under 50% utilisation, 

Not something that mortgage lenders will be looking at as such. 

a03b

AML concerns around deposit is the real issue here...

LondonBuyer2024

Can I just check that AML means anti money laundering? My portion of my deposit is gifted and coming from a family member’s account

grumpy_codger

In Oct it still was:

• If you are employed, payslip(s) covering the latest month. If you are paid any other income, such as a bonus or overtime, payslips covering the last three months are required (or 2 years worth where this income is paid less frequently than monthly).
• If you're self-employed, your last two years’ self-assessment tax calculations and your last two tax year overviews.
• If you’re a contractor, a copy of your contract, plus your last three months payslips and corresponding bank statements showing the salary payments.
• If you're retired, a pension statement from the last 18 months.
• If your mortgage goes beyond your retirement age, you’ll need a pension forecast. This must show how you plan to pay for your mortgage in the future.
• Proof of any other income you and any other applicants receive.
• Your last three months bank statements. These should show income and outgoings
• ...

(quoted from a e-mail from Halifax mortgage advisor)

amnblog

Don't worry about using your agreed OD within limits, that will make little difference to anything.