There are so many different things a lender is looking for when they assess your bank statements. The key to mortgage success is approaching a lender who’s criteria you match.
This is why using a Mortgage Adviser is key. We will ask for your bank statements as part of the online mortgage application and do the work of the underwriter. We will then be able to accurately match you to a lender that is best suited to you.
When an underwriter looks at your bank statements they are looking for:
Affordability – They will verify your income and monthly expenditure back to your bank statements
Net disposable funds – Do you spend everything you earn or is their money left over at the end of the month. A lender will want to see that you can afford your monthly mortgage repayments, so its best not to spend everything!
Have you declared everything – The lender will check your bank statements to make sure you have declared all your monthly outgoings and declared all debt repayments.
Other bank accounts – You will be asked to provide bank statements for all accounts held. The lender will check to see where your transfer funds too. You might send money monthly to a joint account for bills or to a family member for savings.
What don’t lenders want to see as part of the application process lenders will review your bank statements for items they don’t want to see, these are typically:
- A lot of credit commitments – do you have a lot of different credit spread over store cards, credit cards, small unsecured loans etc.
- Pay day loans – Lenders hate payday loans. Regular use of payday loans can imply you are unable to afford your monthly cost of living.
- Gambling – If you are a regular gambler this could impact your mortgage application
- Payments to debt management companies