Cleaning up finances ahead of first time mortgage

dmo84

Hi all

So iv been cleaning up finances ahead of my first time mortgage application

I have no loans, no credit cards (paid off), savings which I'm trying to to save hard over next 3-6 months.

I want to get my general current accounts looking polished. Typically what do they scrutise most that could cause issues ?

I bank with Lloyd's mainly been with them for over 15 years. Got 2 x current accounts one main where salary and bills out, the other one is for holding money between bills etc.

I also have a current account with Halifax which I opened again just for somewhere to send and hold some money, my help to buy ISA is with Halifax.

As I want to minimise what they would have to look in to would it be best to close the 3rd Halifax current account and just use 2 x Lloyd's ?


I'll use this thread for any further questions

Thanks all

ACG

You are probably over thinking it, assuming you do not apply to lloyds/halifax or anyone else in the lloyds group they will usually want 3 months statements for your main account (where your wages go and bills get paid from).

They will be looking for any commitments you have not disclosed and also that you are not spending too much on things like gambling etc.

Anything else should be fine.

dmo84

Hi all,still thinking I should close the one halifax current account, what you think, also do they prefer to have a set buffer on your current account ?

amnblog

As stated.

You are over thinking this and wasting your time.

Run your banking as suits you.

It will make next to no difference to mortgage applications

dmo84

OK thanks, its just what I have read from other people.

Another question, this whole looking through the last 3 months of statements, when they say they look to see if your income stacks up and outgoings are reasonable. I am trying to build a bit of a buffer in my account, I dont use the overdraft feature per say, however there have been one or two times where I have had maybe a £50-£100 overdraft, when not in use I cancel it off.

With the whole "they are looking for gambling etc" do they literally mean that? gambling services? how are they with cash withdrawals?

Thanks for further advice,

Only reason I am overthinking this is because its what I am seeing when I read up.

kingstreet

I'm going to be the third practising mortgage broker to tell you this level of micro-management just isn't necessary.

Irregular use of a small authorised overdraft is going to make no difference to most mortgage applications.

To be an issue, lenders are looking for multiple, regular and high-value betting transactions which when averaged, can't be sustained like a hobby/pastime.

Withdrawing your cash from your account is your business, no-one elses.

dmo84

Thank you, that's re-assuring.

ashe

kingstreet wrote: »

I'm going to be the third practising mortgage broker to tell you this level of micro-management just isn't necessary.

Irregular use of a small authorised overdraft is going to make no difference to most mortgage applications.

To be an issue, lenders are looking for multiple, regular and high-value betting transactions which when averaged, can't be sustained like a hobby/pastime.

Withdrawing your cash from your account is your business, no-one elses.

Are there any lenders that don't ask for statements if you pass initial credit checks well? my partner and I both do Matched Betting so we have £1-2k in gambling transactions going out each month, with the same amount coming back in and a profit recorded, however have read that they only count the money coming out not back in, which will obviously be a train wreck. If I had known this previously we would have stopped a long time ago to make accounts look better.

We both have excellent credit history with no missed payments, no arrears etc. We'll be speaking to our mortgage broker in the middle of the week but be good to understand a rough idea of our chances or if we are going to have to wait 3 months too sort it out.