Bank Statements - what are they looking for?

ndf9876

I know this might sound a bit daft, but what are lenders actually looking for when they have your bank statements?

The reason for asking is that my other half and I have applied, through a broker, for a mortgage (with NatWest). It's about 6 months' earlier than I was planning, but with a very generous cash gift from her folks, and a very good deal on a property, we're going for it.

We've already had our AIP come back as an 'Accept' from NatWest and I understand that when a broker submits this, it's a 'hard' search.

Really, I'm just wondering what they look for? I don't gamble, I have few expenses, all my debts were declared up-front. I have an "Unauthorised Overdraft Charge" of 50p on one statement which I'm none too happy about - perhaps I'm just being paranoid that something like this will sink our chances?

EDIT : Looking for 89.9% LTV on a property, purchase price £310k (so mortgage of £278500)

sulphate

It's nothing to worry about if you have declared everything - they will just check that you are not incurring huge overdraft fees, taking payday loans, gambling, etc or anything else that might suggest that you can't manage money well. They will probably also check that your salary is paid into your account and matches what it says on your payslip.

MickeyDaMouse

Nothing gives a lender a better idea about the financial part of your life than your bank statement.

It confirms all the information you've given and it also gives them an idea on affordability. They can see exactly what you're spendig your money on and how you manage your salary etc.

Nothing to worry about.

ndf9876

Thanks for your replies - I'm probably being overly paranoid - I have read and re-read my bank statements, looking for reasons I wouldn't lend myself money. My direct debits are very regular, and very boring. I can see a fair few restaurant bills, some large cash withdrawls (car repairs - I got a better deal for cash) and other than that, not a great deal of note (apart from that 50p charge). Just a nervous wait now to find out whether or not the application is going to go anywhere!

sultanabran

ndf9876 wrote: »

Thanks for your replies - I'm probably being overly paranoid - I have read and re-read my bank statements, looking for reasons I wouldn't lend myself money. My direct debits are very regular, and very boring. I can see a fair few restaurant bills, some large cash withdrawls (car repairs - I got a better deal for cash) and other than that, not a great deal of note (apart from that 50p charge). Just a nervous wait now to find out whether or not the application is going to go anywhere!

Sounds like you'll be fine. You are allowed to live when applying for a mortgage. As above, they are looking for money management trends and to match up what you say you spend/earn with reality.