Bank statements prior to mortgage application
richy4
Posts: 146 Forumite
About to apply for mortgage offer in order to exchange contracts.
My broker has been given all my relevant info (payslips, employment, spending) however he said my recent habits of putting all of my regular spending onto credit cards may cause me an issue.
I hardly ever use my current account for any routine transactions, such as weekly shopping. Only when I need cold hard cash I obviously withdraw it. Everything else is just direct debits (mobile, gym, trade union sub). As such, it looks like my expenditure is very minimal.
However, my true weekly spending is all on my credit card as it is a 0% deal. My weekly food spending which I put all on my credit cards is about £30-40 a week and a monthly bus card of £50.
Will this cause me an issue, is it a known issue? I am a FTB and still live with my parents so can claim my parents buy all household items etc.
Obviously a lender could look at my credit card spending and assess from there what to lend? Is this a common issue, I'm sure others must have faced something similar especially as this website and Mr Lewis himself advise to do regular spending on credit cards! (Stoozing)
My broker has been given all my relevant info (payslips, employment, spending) however he said my recent habits of putting all of my regular spending onto credit cards may cause me an issue.
I hardly ever use my current account for any routine transactions, such as weekly shopping. Only when I need cold hard cash I obviously withdraw it. Everything else is just direct debits (mobile, gym, trade union sub). As such, it looks like my expenditure is very minimal.
However, my true weekly spending is all on my credit card as it is a 0% deal. My weekly food spending which I put all on my credit cards is about £30-40 a week and a monthly bus card of £50.
Will this cause me an issue, is it a known issue? I am a FTB and still live with my parents so can claim my parents buy all household items etc.
Obviously a lender could look at my credit card spending and assess from there what to lend? Is this a common issue, I'm sure others must have faced something similar especially as this website and Mr Lewis himself advise to do regular spending on credit cards! (Stoozing)
0
Comments
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It wouldn't worry me in the slightest and most lenders I can think of also wouldn't be bothered.
You advisor's reaction has me puzzled...I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
However, my true weekly spending is all on my credit card as it is a 0% deal. My weekly food spending which I put all on my credit cards is about £30-40 a week and a monthly bus card of £50.
Then one assumes that you've a growing progressively increasing balance owing. Are you intending to clear this balance prior to making an application?0 -
Do you repay the balance in full each month, or are you paying less than the full balance?
Will you be able to clear any balance in full on or before completion? if yes, the balance will have zero impact with most lenders.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Balance has been steadily growing each month, I make well over the minimum (£25) payment, usually at least £150 a month payment.
I fully intend to repay in full on/before completion, and have the funds immediately available even if asked to do so earlier.0
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