northern rock requiring additional bank statements.

wigwam_salesman

A friends mortgage app has gone to underwriting at northern rock and they have asked for extra bank statements. This isn't a complaint or anything, it just started me wondering why...he sent them a bank statement, 3 months payslips and a P60 so why would they require to see extra bank statements. They could not provide a reason why they needed to see them. Sounds a bit odd to me!

wecanhelpu

Banks' lending criteria has started to change and they are starting to tighten up their procedures in anticipation of a downturn in the housing market.

This is commonly referred to as a "credit squeeze" .

Lenders are becoming more cautious and I would imagine that this is what your friend has come up against.

jwruk

I've just had to supply 12 months bank statements, 3 months pay slips and loads of other things for a mortgage app, albeit with a different lender.

It wasn't a huge mortgage amount either, but I suppose lenders are allowed to be cautious sometimes.

dwight-van-man

Hiya, For NR to request bank statements, it generally means that either the incomes stated on the app doesn't match with the payslips, or there is a question over the validity of the payslips. Bank statemts are not asked for as part of the normal uunderwriting process.

PBA

Possibly they want to make sure your friend's monthly outgoings are actually what he put down on the application?

Maybe they want to see who he has direct debits to, so they can try and cross sell their own products? (Ok, less likely!)

AndrewSmith

It is no more cloak and dagger than simply you are asking them to lend a large amount of money to someone they do not know. They want to satisfy themselves that the borrower is a good risk and is in control of their money.

NR do frequently ask for 3 months bank statements so there is nothing unusual about it, they do not have to provide a reason for asking for the information. They ask, you provide or dont get the mortgage. Simple as that I'm afraid.

A lender can ask for whatever information it wants when underwriting a mortgage, the information requested can vary from case to case. They also reserve the right do decline or refuse to lend without reason or explanation.

Tell your friend to stop worrying and send the bank statement. If all as above board then it will not be an issue.

wigwam_salesman

Thanks. Was just curious. My mortgage is with Northern Rock and all I had to provide was a P60 and a bank statement for ID.

sarkin

The reason they ask for bank statements is that, ur um clears throat, a lot of mortgages have been written fraudulently with forged payslips. There are loads of companies that will knockup payslips, but bank statements not so easy. As others have said it's thier money so they can ask for what they like.