Mortgage Application. Bank Statements and Multiple Accounts

nemoh88

Hi there, I was wondering if someone could help me with my query.
I am going to look to apply for a mortgage hopefully in around 4 months time. I  currently have about a 30% deposit. My only issue at the moment is that I am on fairly low income and most mortgage calculators predict that the amount I want to borrow is at the very upper end of what I'm likely to be offered so I am therefore trying my hardest to make sure that my application goes as well as possible. What I am most confused about is that I know the broker I plan to go with is going to ask me for 3 months bank statements but my banking at the moment is a little confusing. I usually get my money paid into my Nationwide Account and then I transfer everything apart from my monthly bills into my Monzo account. I then transfer a sum from my main Monzo account  into my Monzo Savings account and keep the rest to pay for things like food and petrol etc. My first question is should I be keeping all the money in one account for the next 3 months to make the bank statements easier to print off and read? And also, I end up with £0 in my Monzo main account and my NW account as I transfer everything into the Monzo Savings. However, some people say you need to make sure you leave an amount in your account to show you'd be able to pay for the mortgage AS WELL as what you are putting into savings. Do you think that is true? I also wondered if anyone has had any luck apply for a single applicant mortgage on low income at all? (I know a lot of people would say I shouldn't be applying if it'll be tight but i'd be able to afford to make the repayments as I'm very good at budgeting when I need to be) I'm sorry this is long winded and if this doesn't really make sense but I find it very hard to explain it properly lol. If anyone has any insights it'd be greatly appreciated.

MovingForwards

I applied for a mortgage in December, got the extension in April, completed in May. Sole, FTB, of maturing years. I went for about 3x annual salary and 15% deposit (adverse lender).

I provided 3 - 6 months of statements for my accounts and still feel sorry for my broker due to how I saved! I would be making loads of small transfers (1p, 2p, 10p, £1, £5 etc) nearly every day to various savings accounts, together with lump-sum transfers (£10, £50, £100 etc) each month on payday. The day before payday I would pretty much empty out my account into savings, leaving 50p - £1 (only safe to do if your employer is very reliable with paying wages!)

As I budget quite tightly, the only money in my account was food budget, petrol budget and any direct debits coming out. If I didn't go shopping, spent less on my shop, I would put the difference into my various accounts. I think it was 5 accounts I had.

My broker recommended I do weekly bulk transfers on the run up to the application going in, instead of my little ones.

I never kept the equivalent of a monthly mortgage payment in my current account, as I had rent to pay (my rent was cheaper than my mortgage payment as it was a shared flat).

It's accepted the amount you save after completing your purchase may be less than when saving the deposit etc.

Hope this clarifies a few points for you.

nemoh88

That was great. Your situation sounds very similar to mine. And I guess Brokers are there for a reason right? I will definitely take the advice on bulk payments in the run up. Thanks again!!

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