What do lenders look for on my bank statements?
Advice on Bank Statements in Doncaster
Customers sometimes get nervous about providing bank statements ahead of applying for a mortgage. In fairness, not all lenders require bank statements, although they all reserve the right to request them.
So if you are planning on applying for a mortgage anytime soon, the best course of action is to spend some time tidying up your account. This will give you a better chance of obtaining a mortgage in the future.
Lenders started paying much more attention into customer’s outgoings off the back of the Mortgage Market Review in 2014. Because it was all brand new at the time, it’s fair to speculate that Lenders maybe went a bit too deep in the analysis of outgoings.
You may remember some of the headlines at that time, such as; “My mortgage provider wants me to tell them how much I pay for haircuts and eating out!” The data is now more detailed, and Lenders place more reliance on the Office of National Statistics and other sources to estimate some of those outgoings.
To increase the chances of your application being accepted, there are a few things you can do. If you have multiple direct debits that are bouncing and you’ve got bank charges building up, the chances of getting a mortgage will be lower.
Generally speaking, Lenders aren’t fond of this, so it would be worth working on that for some time, before trying again. It’s usually okay using an overdraft facility, as long as the limit isn’t exceeded. If it’s a one-off and you have a perfectly valid explanation, you may be let off.
One thing to watch out for is gambling. It’s not so bad if you do it in small doses, some Lenders will let that slide. However, if you’re gambling on a regular basis with a lot of money, this is a no go and something you should address before trying for a mortgage. See BeGambleAware for more.
Get Mortgage Ready!
It’s always a good idea to get “mortgage-ready” before you find the property you want to make an offer on. If you are concerned about anything on your bank statements, it’s better to get in touch with us first and we’ll have a chat. This saves you from the potential disappointment of going through the process, only to be declined.
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