A mortgage lender that doesn't require bank statements?

somethingcorporate

Of course they want to know if you use your overdraft, it shows you are living beyond your means!

Wouldn't you want to know if you lend money to someone if they spend more than they earn?

A little common sense here: a) You have not saved for a deposit and b) you go in to your overdraft regularly both show (to me, a layman) that you are high risk, coupled with being a FTB the reason for rejection seems obvious.

I am surprised that you are surprised by the response!

warholian

Hi Maurice, there are no daft questions in life! Basically, my mortgage lender asked me if I owed any money. I immediately piped up that I had an overdraft and she interrupted me saying they didn't count that. She then asked if I had an credit cards, store cards, loans, etc - I had none, and said so, reiterating that I had an overdraft. I double-checked with her on the second application - reminding her I had an overdraft and she smiled and said not to worry about this.

Now, in a way she was right. I did after all get issued with a mortgage from them, without having them check bank statements. But while they are not fussed about an overdraft because I significantly increased the amount I wanted to borrow, this caused them to investigate. Had I asked for the bigger amount right from the start, I would have been accepted for the loan. This is why it's all so frustrating. My lender says it was the jump that confused their system.

Senior_Paper_Monitor

I'm still somewhat unclear as to whether the OP used a 'mortgage adviser' or the lender's own staff (I am beginning the think it was the latter).

I cannot envisage any circumstances where an adviser was willing to progress without seeing bank statements.

To clarify - THERE IS NO LENDER WHERE BANK STATEMENTS ARE NEVER REQUIRED, although as evidenced by a couple of individual cases quoted above, sometimes these are not required by the lender (on simple i.e lower LTV, own bank, lower earning multiple, excellent credit cases etc). Also bear in mind, that if an overdraft facility exists/has been used it will normally report in the credit file anyway !

I fail to understand the need to find a lender who does not look at bank statements (I repeat there simply isn't one) when by the description of circumstances given the case would be widely accepted by a large number of lenders - simply select a suitable lender and provide a properly packaged case.

Simply put .... the original 'mortgage adviser' (and I'm not convinced the title is correct) was wrong (it appears on many counts).



I also suspect the OP didn't get "issued with a mortgage from them" but passed a DIP at the lower level. this is a different thing.

The system wasn't 'confused' - it increased the level of initial checking because the status against criteria had worsened (see my comment above).

NO bank/lender ignores overdrafts for the purpose of establishing 'financial habits' and calculating affordability.

warholian

Yes, but somethingcorporate - I WAS accepted for a mortgage...a mortgage was issued to me! So, naturally I assumed that I had met the criteria for all their concerns - and my next (bigger) application was well within my affordability. I think I have good reason for being surprised! My mortgage advisor was also surprised - she said this sort of situation had never happened to her before.

warholian

Susiewoozy, did you get an actual mortgage acceptance from Halifax, or was it just an agreement in principle? I have heard with Halifax they do a quotation search, and accept people, and then do a proper search later and people who got an offer get it taken away from them later on down the line. I'm sure this won't be the case with you, but if it was just an agreement in principle they may well be asking for bank statements later on, prior to issuing the morgage.

warholian

Senior paper monitor, I can confirm that the my mortgage was ready for issuing but I couldn't accept it. And as you can see from a few posters, my case is not unusual - it does happen that mortgages get issued without bank statements.

I dropped out of buying that house, and my problems began with asking for a higher amount (still well within the affordability calculated by the mortgage advisor) -who was part of the lender's staff - sorry for not clarifying that point earlier. It really wasn't about overdrafts and bank statements prior to that point.

kingstreet

I'm with SPM on the statement issue.

Often, status requirements like payslips and bank statements are relaxed for high credit scoring cases, or low loan to value applications.

This means there are times when bank statements aren't requested at the outset, although they can be requested at any time.

There are times a mortgage offer can be issued and bank statements can be requested after offer, as part of a routine audit. This can take place right up to the point the mortgage completes.

An alteration to the mortgage amount, or loan to value, may trigger increased status requirements.

In the OP's case, the adviser's insistence the overdraft wasn't an issue may have resulted in a non-disclosure situation. If the overdraft shows on a credit file and it hasn't been disclosed the system will flag the case for a referral to an underwriter at the very least. It may well be that if the overdraft had been declared and the OP given a chance to explain the reason for it, it may not have had the impact it did.

Senior_Paper_Monitor

I process between one and three mortgage applications most weeks, so am very aware of the varying documentation that lenders require with individual applications, I think this clear in my previous post ....

To clarify - THERE IS NO LENDER WHERE BANK STATEMENTS ARE NEVER REQUIRED, although as evidenced by a couple of individual cases quoted above, sometimes these are not required by the lender (on simple i.e lower LTV, own bank, lower earning multiple, excellent credit cases etc). Also bear in mind, that if an overdraft facility exists/has been used it will normally report in the credit file anyway !

.... and this reinforces why you were not asked for the documents initially, but were subsequently as the basis of your borrowing changed.

You seem caught up by "what your mortgage adviser told you" which was blatantly wrong. I have doubts about the advisers qualifications and/or experience based on the apparent comments she has made - but if you spend a little time reading other threads on here you will identify that is not an unusual situation where facing bank sales staff, nor is the pushing through a part packaged case on 'wing and a prayer'.

I don't know the lender concerned, what "mortgage was ready for issuing" actually means or what subsequent checks may or may not have happened (see my comment about overdrafts/credit reports in my previous post).

What I am pretty confident in saying is that the success of any future application (bear in mind you may have a refusal for credit on your profile now) is dependent upon presenting a properly packaged application to an appropriate lender, NOT in selecting a theoretical 'doesn't need bank statements one'.

At this point my contribution reaches an end.

warholian

Senior paper monitor, I think most of us don't know what a "properly packaged application" actually means as we are not mortgage advisors. We simply supply the paperwork we're asked to provide and go by the information we are given. And the result is what happened to me. I have no idea how I would ascertain how to be accepted in future based on your response. I have no idea how to package my application - but cheers anyway.

kingstreet

A broker's approach is to fully investigate any issues which may cause doubts in the mind of the underwriter who will get the application on his/her desk for approval.

So we'd talk to the lender about the issue and find out what the lender requires for this issue to be accepted. We'd then submit the application with all supporting documentation, or fully packaged, as it's known to ensure the best chance of acceptance for our client.

For example, in your case, I'd expect to be asked for three months bank statements, a letter from you explaining the reason for the overdraft and evidence it could be paid off quickly, if required.

I don't doubt the person "advising" you has let you down in this instance.