FTB affordability question

Adam098

Hi, quick question about my mortgage application. Really straightforward - would it be beneficial to pay for everything in cash leading up to my application , so the bank can't make assumptions on my lifestyle and use that against me etc.

Thanks

KnowledgeIsLife

I don't believe it makes much difference as if you take out £50 cash or spend £50 on gambling it is the same outgoing it should not matter how it is spent it is just the fact it is spent they take into account.

Thrugelmir

Adam098 wrote: »

Hi, quick question about my mortgage application. Really straightforward - would it be beneficial to pay for everything in cash leading up to my application , so the bank can't make assumptions on my lifestyle and use that against me etc.

Thanks

What are you trying to conceal?

Adam098

Nothing, just want to maximize my chances as much as possible

Thrugelmir

Adam098 wrote: »

Nothing, just want to maximize my chances as much as possible

If you are on the electoral role , manage your finances properly, meet the lenders criteria etc. Then you are worrying over nothing. :beer:

Adam098

Haha type A personality, I worry about everything

kingstreet

This level of micro-management just isn't necessary.

Just make sure everything is paid on time.

dimbo61

However you can do everything to help your position !
Don't take on any new debt even if Interest Free.
Live within your means and save every penny you can towards All the costs that come with buying a property.
Take sandwiches to work and a flask. No Costa Coffee ever day, no buying your lunch each day from convenience stores ( make sandwiches or bring a tin of soup + bread )
Shop the MSE way and forget the latest I phone at £50/60 a month.
When we applied for a mortgage in 2014 we were asked how much we paid for a haircut !
Expensive hobbies , foreign travel, flash cars etc.
Long and bitter experience of being ripped off by renewing our home/car insurance are a thing of the past.
Using a mortgage broker to find the best deals and guide us through the buying process was money well spent at the time.

butterflybook

It is not necessary to only use cash, sounds like a faff on. Lenders understand that some outgoings will in all likelihood change when you buy a home. Most will use ONS data for affordability and some wont event request bank statements.

A point around certain transactions however as it was mentioned above if it is the likes of gambling transactions on a bank statement then this can be frowned upon my lenders.

Adam098

Yeah, tbh my only foray into gambling is a £20 bet on the national each year :rotfl: As an example, by complete coincidence, two of my favourite bands put tickets on sale this month. This would be the only 2 gigs paid for this year. But when they ask 'how much do you spend on going out' and they see by coincidence I've got 2 transactions to Ticketmaster in a month, I don't want them to think I'm going out to gigs more regularly than I really am. In this case, I'm going to give my mum the cash and she pay on her card so they don't get the wrong idea. If that makes sense.

Frankel17

I wouldn't worry but in my opinion it might be better not to be seen to be withdrawing cash often.



If you have a good credit rating and are well within affordability then you might not even get asked for bank statements.



I have recently had a mortgage with Nationwide accepted and they didn't ask to see any bank statements.