Common Bank Statement Mistakes That Could Delay Your Mortgage

Applying for a mortgage is exciting, but it often involves more scrutiny than people expect. One of the first things a lender looks at is your bank statements and Bank Statement Mistakes. They give a real-time picture of how your money is managed, whether your income is steady, and whether your spending habits suggest you can comfortably take on a mortgage.

For many buyers, this can feel like an extra layer of pressure. The good news is that most issues seen on bank statements are entirely avoidable once you know what lenders are watching for.

Here are the most common red flags, what they mean, and how to prepare.

Frequent use of overdrafts Bank Statement Mistakes

Occasional dips into an arranged overdraft rarely cause problems, particularly if your overall finances look stable. The concern arises when there is a clear pattern of relying on overdrafts to get through the month. If this happens regularly, lenders may question whether the mortgage payments will be manageable.

Gambling transactions

Even small, regular payments to online betting companies are closely reviewed. Lenders are not judging your lifestyle, but they do have to consider financial stability and self-control. Regular gambling activity can be seen as a higher risk when considering long-term borrowing.

Payday loans

Repayments to short-term lenders usually signal previous financial strain. These types of loans can make mainstream borrowing more challenging, as they could suggest difficulties meeting regular commitments in the past.

Large or unexplained transfers

Significant sums moving in or out of your account without a clear reason can raise questions about undisclosed debts, informal loans, or financial arrangements that haven’t been declared. Lenders need to understand your full financial position to assess affordability.

Irregular or inconsistent income

For people with variable income, such as those on commission or freelance work, lenders look for predictability. If income fluctuates widely without a clear pattern, it may prompt further questions. Supporting documents, such as invoices or payslips, can help provide reassurance.

Missed payments Bank Statement Mistakes

Late payments for small items like subscriptions may seem trivial, but they can indicate struggles with day-to-day money management. A single slip is unlikely to cause an issue, but repeated missed payments can weaken a lender’s confidence.

The bigger picture

It is important to remember that no single entry on a statement is judged in isolation. Lenders look at overall stability, consistency, and whether your outgoings appear well managed. Occasional oddities are not unusual. What matters is the general pattern.

How to prepare your statements

You cannot change the past, but you can take sensible steps to present your finances clearly and avoid unnecessary delays. These include:

• Ensuring all bills are paid on time.
• Keeping a buffer in your account where possible.
• Avoiding new borrowing in the months before applying.
• Being ready to explain any irregular transactions.

If you know your income varies from month to month, preparing evidence upfront can make the process smoother.

Why this matters

For many first-time buyers and home movers, the mortgage application process can feel daunting. Bank statements are designed to help lenders check that repayments will be sustainable, not to catch people out. Understanding what lenders look for can make the process far less overwhelming and help your application progress more smoothly.

For more information go to Mortgage – The Finance House

For information on The Finance House go to 503683 – Search Firms – FCA Register

‌Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

All the information in this article is correct as of the publish date 27^th November 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

How New Energy Efficiency Rules Could Affect UK Landlords and Tenants

The Government is preparing major changes to the energy efficiency requirements for rental properties across England and Wales with new Energy Efficiency Rules. These proposals form part of a wider push to make homes warmer, greener, and more affordable to run.

Although the plans are still subject to consultation, landlords and tenants may wish to be aware of what is being considered and how it could shape the rental market over the coming years.

What the Government is proposing with new Energy Efficiency Rules

The central proposal is to raise the minimum Energy Performance Certificate (EPC) rating for privately rented homes. Under the current rules, properties must achieve at least an E rating. The Government is exploring an increase to a stricter C rating for new tenancies from 2028, with all existing tenancies to be included by 2030¹.

This represents a significant shift and could mean substantial upgrades for many rental homes, particularly older properties. The aim is to reduce household energy use, improve warmth and comfort, and support the UK’s long-term environmental targets¹.

A new way of assessing energy performance

Alongside the higher targets, the EPC system is being reviewed. The existing methodology is based on estimated running costs, which can disadvantage homes that use electricity for heating—even when using efficient modern heat pump systems.

A revised system and new Energy Efficiency Rules is expected to look more closely at actual building performance. This may include:

• heating systems and insulation
• heat loss indicators, window performance and draught-proofing
• the impact of new technologies, such as smart meters and home energy monitoring

The intention is to create a more accurate picture of a property’s efficiency.

2030: A challenging target for landlords

If the proposals go ahead, the scale of change required is considerable. Industry analysis suggests a large proportion of rental homes would need improvement works to reach a C rating.

A range of upgrades may be necessary. These could include improving insulation, replacing older windows, or upgrading heating systems. Landlord surveys indicate that many expect to face costs ranging from a few thousand pounds to much more for extensive work².

While the initial investment may be significant, energy-efficient properties tend to have lower running costs and may be more attractive to tenants.

Potential benefits for tenants

Tenants could see longer-term advantages if these rules are introduced. Energy-efficient homes typically benefit from²:

• lower heating bills
• increased comfort during colder months
• fewer issues with damp and condensation

Industry research has suggested that the difference between a lower-rated and higher-rated rental home could amount to hundreds of pounds per year in energy savings.

As energy bills remain a concern for many households, these improvements may offer valuable relief.

What happens next?

The Government’s consultation closed earlier this year. Final decisions, including any spending caps and timelines for implementation, are expected in due course¹.

Once confirmed, landlords will have clarity on what is required and when upgrades must be in place. Many may choose to review their properties in advance so they can plan any necessary work in an organised and cost-effective way.

References:

1. GOV.UK  (2025). Improving the energy performance of privately rented homes: 2025 update. Available at: https://www.gov.uk/government/consultations/improving-the-energy-performance-of-privately-rented-homes-2025-update   [Accessed 25 Nov. 2025].
2. NewsAgent (2025). New EPC Regulations 2025: How to Save your Landlords Thousands. Available at: https://blog.goodlord.co/new-epc-regulations      [Accessed 25 Nov. 2025].
3. For more information go to Mortgage – The Finance House

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‌Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

All the information in this article is correct as of the publish date 27^th November 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

Important Warning About Mortgage “Quick Fixes” Circulating Online This Christmas

As the Christmas period approaches and household budgets come under extra pressure, many homeowners start searching for ways to manage their outgoings with Mortgage “Quick Fixes”. Recently, however, the Financial Conduct Authority (FCA) has issued a firm warning about misleading information online that could leave borrowers worse off¹.

A number of websites and social media posts are promoting so-called “promissory notes”, claiming they allow borrowers to avoid making their mortgage payments with Mortgage “Quick Fixes”. These claims may appear convincing at first glance, but they are incorrect and can lead to serious financial consequences¹.

What is a promissory note, and why the FCA is warning against Mortgage “Quick Fixes”?

The documents being sold typically claim that¹:

• a “trust” or third party will take responsibility for your mortgage
• or that the note itself settles the mortgage in full
• or that lenders must legally accept it as payment

The FCA has confirmed that these statements are false. A promissory note is not a recognised method of paying a mortgage, and sending one to a lender does not remove the requirement to make your normal payments¹.

Some people have paid significant sums for these documents, believing they would help, only to find that they hold no value.

Why relying on these claims can cause real harm

Using a promissory note does not pause or settle a mortgage. This means borrowers may unknowingly fall into arrears if they stop making their usual payments. This could¹:

• impact their credit file
• increase the total amount they owe
• reduce future mortgage options
• in the worst cases, place their home at risk

These schemes are often targeted at homeowners who are already under financial pressure, which can make the situation even more difficult.

What you can do if you are concerned about your mortgage payments

If you are worried about upcoming payments, please do not rely on information from unregulated online sources. There are legitimate steps you can take.

1. Contact your lender as soon as possible

Lenders must treat customers in financial difficulty in a fair and considerate way. Depending on the circumstances, they may explore temporary or longer-term options with you. These vary case by case and are not guaranteed.

2. Speak to your mortgage broker

If you would like help understanding the information provided by your lender or would like to discuss your mortgage more generally. While we cannot make decisions for your lender, we can help you understand what certain options may mean for you.

3. Consider free, confidential debt support

If you feel under significant financial strain, reputable organisations can offer guidance on budgeting and debt management. These include:

• Citizens Advice²
• StepChange Debt Charity³
• National Debtline⁴
• MoneyHelper⁵

These services are independent and may help you review your wider financial position.

A final reminder for homeowners

During financial stress, it can be tempting to believe in a simple solution. However, anything claiming to cancel a mortgage instantly or remove the need to make payments should be treated with caution. The FCA has clearly warned that promissory notes do not work and may cause real financial harm¹.

If you have any questions about your mortgage or want help understanding the process, we are here to support you.

References:

1. FCA. (2025). Struggling with your mortgage? Avoid risky offers. Available at: https://www.fca.org.uk/consumers/struggling-mortgage-avoid-risky-offers     [Accessed 25 Nov. 2025].
2. Citizens Advice. (2025). Citizens Advice. Available at: https://www.citizensadvice.org.uk/    [Accessed 25 Nov. 2025].
3. ‌ Stepchange.org. (2025). StepChange Debt Charity. Free Expert Debt Help & Advice. Available at: https://www.stepchange.org/   [Accessed 25 Nov. 2025].
4. Nationaldebtline.org. (2023). Free Debt Advice and Support | National Debtline. Available at: https://nationaldebtline.org/ [Accessed 25 Nov. 2025].
5. MoneyHelper (2025). Free and impartial help with money, backed by the government | Available at: https://www.moneyhelper.org.uk/en [Accessed 25 Nov. 2025].
6. For more information go to Mortgage – The Finance House

‌‌Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

All the information in this article is correct as of the publish date 27^th November 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

Budget 2025

Chancellor Rachel Reeves has delivered her Autumn Budget 2025, the first major fiscal statement of the year for this Labour government. We wanted to provide you with an overview of the most notable announcements made in yesterday’s speech.

Personal taxation Budget 2025

• National Insurance (NI) and income tax thresholds will remain frozen for an additional three years beyond 2028, gradually pushing more people into higher tax brackets.
• The annual cash limit for under-65s using cash ISAs will be restricted to £12,000. The remainder of the £20,000 allowance must be used for investment products.
• Basic and higher income tax rates applied to property, savings and dividend income will rise by two percentage points.

Wages, benefits and pensions Budget 2025

• From April, the cap preventing households on Universal Credit or Child Tax Credit from receiving support for a third or subsequent child will be removed.
• The statutory minimum wage for workers aged 21 and over will rise by 4.1%, from £12.21 to £12.71 an hour.
• The minimum wage for those aged 18 to 20 will increase by 8.5%, from £10 to £10.85 an hour, as part of a move toward a single adult rate.
• The basic state pension and the newer state pension will increase by 4.8% in April, exceeding current inflation, in line with the triple-lock commitment.
• From 2029, employees using salary-sacrifice pension schemes will start paying NI on contributions above £2,000 a year.
• The Help to Save scheme, which offers bonuses to eligible Universal Credit claimants, will be extended and expanded beyond 2027.

Housing and property Budget 2025

• Homes in England valued at more than £2 million will be subject to a council tax surcharge of between £2,500 and £7,500, linked to a revaluation of properties in bands F, G and H.

Transport

• Fuel duty will remain frozen for five months after April, then increase gradually from September 2026.
• A mileage-based tax for electric and plug-in hybrid vehicles will be introduced from 2028.
• Regulated rail fares in England will be frozen next year, marking the first full freeze since 1996 (although some previous rises were below inflation).
• Premium car models will no longer be available through the Motability scheme, which provides cheaper vehicle leases to eligible disability-benefit recipients.

Drinking and smoking

• From 2028, the tax on sugary drinks will be extended to include pre-packaged milkshakes and lattes, reversing the exemption put in place when the levy was first introduced in 2018.

UK growth, inflation and public finances

• The Office for Budget Responsibility expects the UK economy to grow by 1.5% this year, up from its 1% forecast in March.
• Inflation is forecast to average 3.5% this year, fall to 2.5% next year and return to the 2% target in 2027.

Other measures

• English regional mayors will gain the power to introduce a tax on overnight accommodation in hotels and holiday lets, similar to existing or proposed measures in Scotland and Wales.
• The NHS prescription charge in England will remain at £9.90 for another year; prescriptions continue to be free in Scotland, Wales and Northern Ireland.

Source

BBC (2025). Budget 2025 summary: Key points from Rachel Reeves’s speech. BBC News. Available at: https://www.bbc.co.uk/news/articles/cj4w44w42j5o            [Accessed 26 Nov. 2025].

For more information go to Mortgage – The Finance House

‌All the information in this article is correct as of the publish date 27^st November 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.