Mistakes to avoid on your bank statements... 
In some cases when you submit an application to a lender, they will request copies of your bank 
statements to support your application. In most cases this will be straightforward but there are times we 
have seen things showing on bank statements to cause delays on applications and even cases to be 
declined so here we have our top mistakes to avoid if you are applying for a mortgage! 
Bounced payments 
In this case direct debits and standing orders that have attempted to be taken but have bounced as there 
was enough money in your account is a potential red flag to lenders as a sign of money mis 
management or spending beyond your means. Our advice is to try to always keep enough money in your 
account or adjust your direct debits to come out just after payday to ensure your money is there in time 
for it to be taken. 
Excessive Overdraft usage 
A little bit of overdraft usage is OK, as this shows you can use credit little and often and pay it back 
quickly. But excessive overdraft usage or exceeding your overdraft limit is another sign of money 
mismanagement which can cause a lender to decline an application. At the end of the day, they are 
lending you a large sum of money so they want to see you can manage smaller amounts of money 
before they give you a large sum of money. 
Extending your overdraft facility 
This again shows you require extra credit to help handle your finances. Increasing your facility once is 
ok, but multiple requests to extend your overdraft and remaining in your overdraft for long periods shows 
money mismanagement. 
Excessive gambling transactions 
The spending on gambling is relative, if you earn £2,000 a month and only spend £20 per month on 
gambling this would be OK. But if you are spending a few £100s per month on gambling or there are 
multiple transactions in a month to gambling sites, this is a sign of potential addiction or lack of control 
over gambling. 
Unexplained transactions 
Unexplained transactions are a red flag for money laundering. If you have multiple transactions of sums 
of money entering your account and quickly leaving your account again with no explanation or plausible 
reason, this is a red flag for money laundering will likely result in a declined application. If you do have 
multiple transactions of money coming in and out of an account which you can explain e.g., transferring 
money into your own savings account for your depsoit, this is OK if you can explain it. 
Transactions with stupid names 
We’ve all been there when you transferred your mate some money for last nights take away or drinks the 
weekend before but sending or receiving money with transactions under stupid names can also lead to a 
declined application. At the time when you send your mate £20 for your beers on Saturday night and 
name it ‘Drugs’ or ‘Jihad training’ it may seem hilarious. But it isn't so hilarious when that’s the reason 
your mortgage application gets declined. 
If you have any questions about what we have covered or want to ask any questions about your own 
position before applying for a mortgage please call us on 01482 205084 Or email us 
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