Mortgage app - bank statements

Jman123

Hi all need some advice please.

looking to remortgage anytime now. Appears 3m payslips and bank statements is the norm.

Only problem I have is i’ve got a lot of ‘paypal’ transactions on my statements. 2 reasons. Big group of my mates did a marathon recently and I sponsored each one individually via Paypal over a month period and also I use Paypal for my online betting deposits, and stupidly rather than say deposit £50 I’d deposit 20 then 20 then 10. I also tend to pay via Paypal when shopping online as I trust them rather than imputing my card details. So the last couple of months my statements technically look covered in Paypal deposits.

I have a small overdraft which I use every month my regular wage covers this but I do go back in it again about 10 days before I get my monthly wage again. I never go over the overdraft limit.

I obviously don’t want this to be a problem and would rather not ‘risk it’ and send the statements anyway and it cause issues.

2 bits of advice please.

1) anyone know of any companies that only want 1 months or no bank statements.

2) am I perhaps worrying unnecessarily.

Nicola83

We went with Barclays and they only wanted 1 months bank statement and 3 months wage slips. I was expecting them to request more, but they didn't.
We did go through a broker through so I don't know if that made a difference.

Smevchenko

You might want to double check some of the PayPal transactions, When i deposit money into B365 using PayPal, the transaction on my statement reads PAYPAL *B365 or something similar.
I bank with RBS, so it may just be something that they do.

I am in the middle of an application with Barclays, and the underwriters have not asked about gambling transactions so far. They also requested 3 months statements, although I haven't made a gambling transaction in 8 weeks.

Jman123

Ah ok. Just checked and mine just have like a transaction reference number rather than saying who the merchant was. So no mention of gambling sites etc.

I mean I have like 12-15 transactions a month for the past 3 months. Like 4 every week as such. Some in a block of 4 if I haven’t purchased anything else. Just doesn’t look good but maybe I’m worrying unnecessarily

Jman123

Seems to be 3m bank and wage as standard really. Few I’ve spoken to say it depends on your income and credit commitments. They may want to see what regular overtime / bonuses you get etc and also check your bank statements to see what monthly loan/credit card payment you commit too etc.

Anyone know of any who may only want wage slips etc?? These aren’t a problem

Jman123

anyone else have any advice?

Note - I wont be gambling until I've sorted the mortgage so next 6 weeks my bank statements should be a lot tidier. It's the 6 weeks prior to now I'm worried about. But we're aiming to have some work done on the house over summer and 6 weeks is probably the longest I can leave it before getting the application going really.

Also I've spoken to a couple of lenders and a number have suggested they would want to see c/card statements etc to evidence balances and rates etc. I've never had to supply these before - do all lenders do this?

Thanks

MortgageMamma

Betting is not a definite no-no for a mortgage lender. The situation depends on how frequently you bet and how much money you spend on betting over a period of time in relation to your disposable income.

When you complete a mortgage application as a first time buyer you usually have to give

Proof of ID - usually a passport or driving licence or similar

Proof of address - utility bills to where you live now

Proof of income - 3 x wage slips + a p60 - this varies a lot from lender to lender

3 months bank statements, sometimes less for low risk lending

Proof of liabilities - you need to declare all your credit commitments, childcare costs, costs of running your home car and travel to and from work + all your non essentials such as broadband/sky/virgin/holidays/clothes etc.

Credit report - you need to declare if you have any ccjs, defaults, bankruptcies, IVAs, DMPS, reposessions or missed payments

Criminal convictions - some lenders insist on checking if you have any criminal convictions this is also the case for insurers.

You have to be prepared to be an open book and provide all this info - there is no way you can hide it or sugar coat it.

BUT

If you speak to an independent mortgage broker I'm pretty sure they will be able to direct you to a lender who is suited to your particular circumstances, and you may be able to beat the 5% rate as well. Worth a try.

Also don't forget there are government schemes that can help you get on the housing ladder with a better deposit. Google government help to buy and go to the .gov.uk web address for further info.

Getting a mortgage is the biggest purchase you are likely to ever make, don't go into it without professional advice.

Kind regards

MM

kingstreet

As an independent broker we always ask for three months' bank statements.

Based on what is visible on those statements, we might recommend a lender which doesn't ask for bank statements, or asks for only one month's.

We are here to give you the best chance of a successful mortgage application.

enthusiasticsaver

Normally 3 months bank statements and wage slips are standard. What is the LTV percentage of your mortgage? If it is very low they may be less cautious.

Gambling transactions can be a red flag so for that reason I would either go with your current lender who may be less particular or a mortgage broker who will be familiar with banks who don't worry about paypal or gambling transactions.

Jman123

Hi to confirm this is a re mortgage. I’ve “owned” my house for 8 years.

We want to change deal and add on some additional borrowing.

LtV will be 80%

My credit file is good to excellent. I have some credit commitments and owe just under 50% of my credit card utilisation which I usually make a lot more than the minimum payment each month.

Alarae

If it is of any help, Santander didn't ask us for bank statements per we, rather just for evidence of deposit.

This wasn't in my main account so they never saw my main banking transactions.

Obviously may be different for you, but giving my experience.