What Lenders Look For On Bank Statements
If you’re applying for a mortgage, you may be aware that lenders reserve the right to request to see your bank statements. This can cause many customers to be nervous, and although it is true, not all lenders choose to do so. However, because there is a chance they might, it’s worth preparing for it. To give yourself the best chance of being accepted, it’s worth looking at how you can tidy up your account activity.
Off the back of the Mortgage Market Review 2014, lenders started paying much more attention to customer’s outgoings. At the time, it’s probably fair to say that many lenders went a bit overboard in their analysis. You might have heard horror stories about people being asked how much they paid for haircuts and eating out. The is now a lot more data available to lenders. Therefore, they tend to place more reliance on the Office of National Statistics and other sources to estimate some outgoings.
Things To Look Out For On Bank Statements
There are certain things you can do to enhance your chances of being accepted for a mortgage. Clearly, if you have bouncing direct debits and are racking up bank charges then any lender will frown upon that. If this sounds like you, then you’ll need to work on getting these things in order. Using an overdraft facility is usually ok if you do not exceed the agreed limit. Even then, if it’s a one-off which you have a good reason for, it’s possible that you will be accepted.
Gambling is something that many lenders have an issue with. If it is very small amounts, then they don’t tend to be concerned about this. But if you gamble regularly, it would be wise to address this prior to applying.
We think it’s a good idea to get “mortgage-ready” before you find a property you want to offer on. Therefore, if you have any concerns about anything on your bank statements, contact us sooner rather than later to avoid the disappointment of having an application declined.
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