Further bank and credit card statements required for mortgage application

triin27

I'm in the process of applying for a mortgage and my lender has asked me further statements. I was initially asked for one month bank statement but after going to the underwriters they've come back asking further bank statements and also credit card statements.

I am really worried I will get declined because my statements have been a mess for the past 3 months! I am a first time buyer and my mum has been helping me financially (towards buying a car, offering to cover the solicitors fees) which I am really grateful for but it looks very dodgy on my statements. Should I explain this to my lender or just hope they understand?

I also recently loaned my credit card to my mum when she went abroad. She used the credit card to pay for a hotel, and even though she transferred the money back it shows on my credit card statement which they have now asked to provide. Should I tell the bank that I gave my credit card to somebody else or just let them think I spent money on a holiday couple of weeks before applying for a mortgage?!

ACG

I get 3 months bank statements for everyone.
If there is an issue on there, we go to a lender who only asks for 1 months or no statements at all.

Spending money on a credit card should be fine, you are allowed to go on holiday...although in this case it was your mum, but the principle is the same.

It sounds like you have gone to a fussy lender as very few lenders ask for credit card statements.

If you do not supply the statements, you will not get a Mortgage. So if you look at it like that, you have nothing to lose by sending them.

madteapot

I applied for mortgage on my current house last year and similar thing happened. I have also heard of similar thing happening from a friend of mine who applied for mortgage earlier this year. I think it depends upon which lender you have applied to and how your credit history pans out.

It also depends upon your personal circumstances as in my case I wasn't citizen and had limited leave to remain (Visa) in the UK. But since they have already as mentioned by ACG I don't think you have an option to refuse providing the required document without risking rejection on the mortgage application.

amnblog

ACG wrote: »

Spending money on a credit card should be fine, you are allowed to go on holiday...although in this case it was your mum, but the principle is the same.

Not if our applicant is letting mum roll up debit in their name, I would have thought an underwriter won't be thrilled to hear that - don't you think ACG?

Presumably, the same mum that has been helping our applicant with their living monthly costs as evidenced by the bank statements.

triin27

Thank you for the replies! I will of course send the required statements but I was just unsure how much of these I should explain... I am worried the lender will decline the application without giving me the option to explain why I have these seemingly random deposits coming in or why it looks like I am spending above my means on my credit card!