Requirements when applying for a Mortgage

kingstreet

My issue here is that trying to do a definitive list of "who wants what" risks backfiring on someone who reads it, expects a lender to react in a particular way, then loses money when the real reaction is different to what was expected and a case is declined.

MoneySaverMick

Amn - I had 3 months statements ready to provide however had to go back another 6 months which I didnt realise.

Very good point that every application is different. I think that what is key that people ensure they enter into the application process knowing they have no issues providing 6 months however likely to be 3 months.

A friend who I have been speaking to this morning has advised they had to provid 3 months and that was with Newcastle Building Society last october

MoneySaverMick

Another point I've wanted to bring into this thread regarding bak statements is that I was only asked to provide the statements. At no point through the mortgage application process was I asked to explain any outgoings/incomings, they didn't question anything on any of my statements which I thought they may have done. I believe they take the statements away and scrutinise these themselves. Happy to be corrected however...

amnblog

Let's try and crystallise this people.

All lenders reserve the right to ask for bank statements.

Most mainstream lenders will ask for one or three month's statements. Sometimes they will extend this to six months.

A specialist lender dealing in adverse cases are more likely to ask for six months - although we have also seen both 12 months and 24 months requested.

A lender with a policy of not asking for bank statements may still do so in some cases. A lender that generally asks for bank statements may not do so in some cases.

What are they looking for?

Income into bank matching wage slips
Benefits payments
Unexpected outgoings
Staying within overdrafts
Returned payments
Pay day loans
Unexpected incomings
Rental payments
Mortgage payments
Expensive habits not in control (gambling, alcohol)

Lenders like postal statements, many account holders do not receive postal statements today so online statements can be accepted if they show:

Clients name
Account number
Sort code
Banks URL

Most banks now have online statements in a format that is perfectly acceptable for mortgage purposes.

What is not acceptable is a screenshot from an iPad or iPhone or photos taken from these types of devices.

I hope that helps.

MoneySaverMick

Great post amn!! that will help alot of people in the future including me

andyfromotley

18 Months ago Nationwide asked me for 6 months worth to show income and show payment of rent? I suspect they just wanted to check my finances were generally in order as described by amn above. However i had heard that banks were doing this and had been scrupulous in the 12 months before in running my current account like a financial angel:A:A (a bit different from my first mortgage with them in the 80's when it took me 10 minutes with no docs to get a mortgage of 5x the salary i would have WHEN i started my new job!!)