When applying for a mortgage, most lenders will ask to see your bank statements, although some of them may not. Every lender has the right to request to see your bank statements, so you should expect them to ask.
Sometimes, customers can get nervous about their bank account when it comes to providing statements ahead of their mortgage application. Some people don’t know what lenders don’t like seeing on your statements. You could’ve thought it was nothing but you need to remember that a lenders viewpoint will always be very different from yours.
You should consider investing some time to tidy up your account before approaching your lender or your local Mortgage Broker in Sheffield. Getting prepared early will increase your chances of your mortgage application being accepted.
Prior to the credit crunch in 2008, lenders were giving out mortgages left, right and centre. They didn’t really look at your bank statements and people were granted mortgages who couldn’t really afford one. Following the Mortgage Market Review in 2014, lenders started paying much more attention to their customer’s outgoings. Some lenders did go a bit overboard and started taking everything into account. You may remember some of the headlines at that time regarding “my mortgage provider wants me to tell them how much I pay for haircuts and eating out”. This was during the aftermath of the credit crunch, things got a bit crazy as you can see. Thankfully, lenders aren’t as strict now, but you still need to be careful!
There are lots of different things that you can do to improve your chances of being accepted. If you are asking for a mortgage and you are bouncing direct debits and racking up bank charges then any lender will frown upon that, so if that’s you then you’ll need to work on getting things in order.
Lenders don’t normally mind it if you go into your overdraft as long as you don’t exceed your agreed limit. You’ll also need to provide a good reason to why you have gone into your overdraft as lenders want to be sure that you’ll be able to afford a mortgage.
Gambling is something that many lenders have an issue with. If it is in very small amounts then it’s often okay but if you gamble more regularly than that it could be a problem. As a Mortgage Broker in Sheffield, we would always advise that you be careful with this before applying.
It’s a good idea to get “mortgage-ready” before you find a property you are would like to purchase. If you have any concerns about whether lenders may have an issue with anything on your bank statements we would recommend you contact a Mortgage Broker in Sheffield sooner rather than later to avoid the disappointment of having an application declined.
If you are a First Time Buyer in Sheffield who doesn’t know a lot about mortgages, you should definitely get some specialist advice from a Mortgage Advisor in Sheffield. They will guide you through the whole mortgage process and help you with your application and get you on track so that lenders will be impressed.