Applying for mortgage - how to 'pimp' bank statements?

robcyb

Hi all - as Martin himself has quite rightly said - when applying for any credit (loans, overdrafts, credit card, mortgages, etc) you have to go 'on the pull'.

Now that I've got a decent mortgage advisor (who's not tied to an estate agency) he asked for 3 months of bank statements to help with the assessment of affordability etc. These are ultimately required for application but at this state it was to align the expenditure statements I had provided to the black ink on paper from the banks.

When it comes to application I assume banks are looking for squeaky clean bank statements? I.E., not 100's of transactions per month on debit card payments / cash withdrawals?

We've been withdrawing our weekly budget as cash and spending appropriately for a few months now, but still have the ocassional contactless payment for things like coffee, bus fares, etc.

Are there any tips (aside from going back to frugal student days of eating beans on toast for a month) that would help 'pimp' the statements?

Thanks in advance! :beer:

Neutrinno

I wouldn't worry that much about it, as long as your income stacks up and shows and you have declared your commitments and major outgoings you will be fine, avoid excessive gambling.

Lenders aren't going to be worried about contactless payments or cash withdrawals.

kingstreet

No. All they are looking for is decent account conduct (so no unpaids or excess overdraft/unauthorised overdraft charges) and that the credit commitments you disclosed are matched on the bank statements.

Some lenders don't even ask for bank statements, so don't worry about micromanaging your expenditure. Eating beans on toast and nothing else for three months before you apply was largely media hype.

You are allowed to spend your money.

robcyb

kingstreet wrote: »

No. All they are looking for is decent account conduct (so no unpaids or excess overdraft/unauthorised overdraft charges) and that the credit commitments you disclosed are matched on the bank statements.

Some lenders don't even ask for bank statements, so don't worry about micromanaging your expenditure. Eating beans on toast and nothing else for three months before you apply was largely media hype.

You are allowed to spend your money.

I believe during Christmas we dipped into our arrange overdraft for approximately 3 days - this was due to me changing employer and not re-arranging direct debit payment dates.

I might have heard it from the media, but I'm sure most lenders would see through it. I,E., spending £5 a week on a 6-pack of beans and a loaf (or two) of bread!

Thanks for the encouraging words.

robcyb

Neutrinno wrote: »

I wouldn't worry that much about it, as long as your income stacks up and shows and you have declared your commitments and major outgoings you will be fine, avoid excessive gambling.

Lenders aren't going to be worried about contactless payments or cash withdrawals.

I certainly feel like buying our first house is a bit of a gamble. Thanks for the advice.

kingstreet

robcyb wrote: »

I believe during Christmas we dipped into our arrange overdraft for approximately 3 days - this was due to me changing employer and not re-arranging direct debit payment dates

Occasional use of a small approved overdraft is perfectly acceptable.

The_Real_Cheddar_Bob

if you have a good broker then don't worry. Ours took care of everything.good luck

csgohan4

unless it's gambling transactions or regular outgoings which are not declared, such as personal loans/ large season ticket outgoings