Bank statements and mortgage application

Snakes93

Hi, I was hoping for some advice. My partner and I are going to apply for a mortgage next week. I was wondering what lenders are looking for when they search your bank statements. I frequently move money between a savings account and my current account, I find it helps with budgeting. Will this be viewed negatively?

lee111s

They're lookig at how you spend your money, are you in an overdraft every month, do you gamble etc.

wjr4

I move most of my money to my savings account every month, leaving approx. £100 in the current account each month & I've just had a mortgage offer - I was worried they would think I overspend but seemed to be okay!

Snakes93

No don't gamble. I basically get paid and put all of my remaining income after rent and bills into my savings account every month. I will then transfer amounts back into my current account throughout the month to spend. Find it helps me keep track of my spending as I have to physically transfer an amount back but I realise this may look weird if someone was to go through my statements.

goodwithsaving

You'll be fine. I do that and 'loan myself' money as and when. As long as you're not in overdraft etc. it's fine.

Snakes93

Thanks that's good to know. I haven't had to use an overdraft since I was a student and that was a good few years ago now so hopefully all will be fine. This buying a house business is stressful! We found a house a lot quicker than expected so don't have time to change any spending habits etc. like some websites I have read advise to make your statements look better to lenders. Statements will show a true reflection of how we have lived up to this point and how we will continue to do so once we have a house!

goodwithsaving

To be honest, making spending habits seem better to lenders imo isn't a very sensible approach. Reason being, their lending limits are there for a reason. Yes they're a pain, but if you suddenly found you couldn't afford it who'd get it in the neck for loaning the money in the first place.......the lender.
They can be picky (HSBC) but as long as you aren't in your overdraft, not gambling and you prove you can save, you should be okay IF you are working within the limits of affordability and aren't trying to hide any information from the lender to obtain enough of a mortgage.

Good luck. It's stressful but worth it.