Bank statements

Rodis33

Hi,

This is probably really obvious but what about to complete a mortgage application but with a bank that I don't already bank with. They have asked for my bank statements from my current account. I am just wondering what do they use the statements for? Is it just to see what my normal monthly outgoings are or something less obvious than that?

I know it probably seems like a silly question and I have nothing to hide but more curious than anything.

Thanks in advance

glosoli

Mostly to see your account conduct, and to ensure your expenditure roughly tallies up with what was mentioned during interview. It can be a default requirement in certain circumstances also, such as high loan amounts, or high loan to value amounts, or with some lenders, in every occasion.

Rodis33

That's great, thank you. I had a bit of an erratic month expenditure-wise so was worried it might affect or they might question my account handling, but don't see why it should?

Futuristic

Rodis33 wrote: »

That's great, thank you. I had a bit of an erratic month expenditure-wise so was worried it might affect or they might question my account handling, but don't see why it should?

They usually ask for 3 months and it should be fine, worse case they'll ask for 6 months but again shouldn't be a issue. I maxed out my credit card and it was showing on my file but they didn't question it as other months was low and repaid on time.

Rodis33

Thank you. I just didn't want them to start unpicking everything because I had an unusually expensive month (within reason) and they cause me a problem as a result of it.

GlamGirlie

Hi, no they won't pick it all apart, they look at general spending and affordability, eg if you say on your application your food is £200/m but you actually spend £600, and your car/fuel bills are £200 but you actually spend £500, then you're spending a lot more than you declared on the application and this might affect affordabilty.

They will also be looking at gambling type transactions, and to check you haven't got a load of undeclared transactions eg mortgage, coucnil tax and utility bills for a property you 'forgot to mention' or child maintenance bills you 'forgot' to declare on the application!

Rodis33

Thanks. That all makes sense. I guess it's the possible undeclared stuff that they need to be sure of. But we don't have those worries thankfully. At the moment we have a lot of disposable income which is why I had a month of high spend, but it was just before going on holiday and had a few PayPal transactions which actually is another point, do I need to justify those too, or will they just accept them as they are?