Bank Statements/ Overdraft Question

jgy6000

Hi All,

Im going to be applying for my first mortgage this month and wanted to ask a few questions. From what i understand i will need to supply the lender with bank statements (3 months or more)

Does the lender want statements for my current account or all my bank accounts?

The reason i ask is i have:

• £15k in an ISA
• about £2k-3k in an e- savings account
• and my current account is overdrawn by about £800 every month (im a recent graduate and i have a 0% overdraft up to £1k, so every month when i get paid i transfer all the money into the e-savings account and go up to my 0% overdraft limit)

When im asked to provide bank statements will they only look at my current account (as it looks fairly bad if you don't take my other accounts into consideration)

Also will the fact that im constantly in my overdraft be an issue with the mortgage application?

Finally will Natwest be able to provide me with statements if i go into the branch. I haven't had a paper statement in years as i do all my banking online.

Thanks for your help

JGY

kingstreet

Having an overdraft and using it isn't a capital offence. It may be worth paying it off a few months before you apply for a mortgage though as you want to ensure the best chance of success.

Lenders will want to see three months statements for the current account you have your wages/salary paid into. This combines with the payslips you also submit to give a double-check of the income you've declared and the date you should receive it.

You won't normally be asked for other statements, however proof of deposit can sometimes be required for the lender or solicitor, so these are useful to have on hand.

Each lender takes a different view on internet statements. Generally perception is improving but you'll find getting your branch to print statements for you and stamp them with the branch stamp allows you to an added level of security for the more picky lenders.

jgy6000

kingstreet wrote: »

Having an overdraft and using it isn't a capital offence. It may be worth paying it off a few months before you apply for a mortgage though as you want to ensure the best chance of success.

Lenders will want to see three months statements for the current account you have your wages/salary paid into. This combines with the payslips you also submit to give a double-check of the income you've declared and the date you should receive it.

You won't normally be asked for other statements, however proof of deposit can sometimes be required for the lender or solicitor, so these are useful to have on hand.

Each lender takes a different view on internet statements. Generally perception is improving but you'll find getting your branch to print statements for you and stamp them with the branch stamp allows you to an added level of security for the more picky lenders.

Thanks for the quick reply, I have cleared my overdraft by transferring some money from my e savings over, how much of an affect this will have I'm not sure as I'll be applying for the mortgage this month

kingstreet

Put it this way, I'd say you have a very good chance of being accepted for an 85% mortgage with Abbey or Halifax.

If you want 90% from HSBC or Post Office, you may have given them just the excuse they need to decline.

As always, it's about affordability and deposit. To a certain extent it's a case of trial and error as no-one can predict the outcome of an application to a credit scoring lender...

UrWntr

I recently bought a property and I wasn't asked for any bank statements other than proof of deposit for money laundering purposes, which the solicitor requires not the lender.

jgy6000

I'm covering all bases so have 6 months payslips ready should anyone require it. In addition to the 18k I have in my account my dad is giving me 32k to go towards it so I'll have a total of £50k deposit, looking to borrow up to £140k as a maximum

monty1981_2

UrWntr wrote: »

I recently bought a property and I wasn't asked for any bank statements other than proof of deposit for money laundering purposes, which the solicitor requires not the lender.

Hi, which lender did you use?