What Lenders Look For on Your Banks statements. Not all Lenders ask to see bank statements as a matter of course, although all reserve the right to request them. Mortgage customers can sometimes get nervous about their bank account when they come to provide statements ahead of applying for a mortgage. If you are considering applying for a mortgage sometime soon then invest some time in tidying up your account conduct now to give your future application the best possible chance of success.
Following the ‘Mortgage Market Review 2014’ lenders started paying much more attention into customer’s outgoings. Back in 2014 when this was all brand new, its fair to say now that some Lenders went a bit overboard in some of their deep analysis of outgoings, 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”. The availability of ‘statistics’ is greater these days and there is rich data avialable to Lenders from the Office of National Statistics and other sources to estimate some of those outgoings.
You can take steps to help your chances of your mortgage application 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. Using an overdraft facility is usually ok, as long as you do not exceed your agreed limit. Even then, if it’s a one-off with a good explanation then it’s still possible that you will be accepted.
What Lenders Look For on Your Banks statements – Gambling!
Gambling is something that many Lenders have an issue with. If it is very small amounts then it’s often ok, but if you gamble more regularly than that it would be wise to address 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 us sooner rather than later to avoid the disappointment of having an application declined.
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