Do banks check bank statements when applying for loans

SeanG79

jjdc said:

Ratesetter certainly do. They'll ask to link to your bank account before quoting to verify income and expenditure. Whether the automated process checks individual transactions, I'm not sure, but id doubt it.

Ratesetter didn't ask me to link my bank account for a loan circa 3 months back...

Nashefc

SeanG79 said:

jjdc said:

Ratesetter certainly do. They'll ask to link to your bank account before quoting to verify income and expenditure. Whether the automated process checks individual transactions, I'm not sure, but id doubt it.

Ratesetter didn't ask me to link my bank account for a loan circa 3 months back...

I see these popping up all the time SeanG79. How was your experience I see mixed reveiws but the soft check I was accepeted no problem

HobgoblinBT

When I worked for a high street bank the applicant’s bank account transactions were checked electronically.  They monitor the account for regular payments in, commitments such as regular payments such as standing orders and direct debits, the balance, overdraft facilities and an account staying within agreed limits and an affordability check.  The above is a factor as well as the responses to the questions on the application, and possibly other factors such as payments to known gambling sites generates a response to the application.  To quote Little Britain, computer says yes, computer says no or computer says maybe. 

No means no unless there are very exceptional circumstances which needed to be referred to an underwriter with a very good case to get the system decision reversed.  Yes is yes subject to common sense checks, eg if someone claims a salary of £30k, look for evidence,  and a maybe can be a yes, subject to passing common sense checks and/or an affordability check.
Hope that helps.

Nashefc

HobgoblinBT said:

When I worked for a high street bank the applicant’s bank account transactions were checked electronically.  They monitor the account for regular payments in, commitments such as regular payments such as standing orders and direct debits, the balance, overdraft facilities and an account staying within agreed limits and an affordability check.  The above is a factor as well as the responses to the questions on the application, and possibly other factors such as payments to known gambling sites generates a response to the application.  To quote Little Britain, computer says yes, computer says no or computer says maybe. 

No means no unless there are very exceptional circumstances which needed to be referred to an underwriter with a very good case to get the system decision reversed.  Yes is yes subject to common sense checks, eg if someone claims a salary of £30k, look for evidence,  and a maybe can be a yes, subject to passing common sense checks and/or an affordability check.
Hope that helps.

Thank you, for a smaller loan do you know how far back they would check. I know mortgages in like 3 months minimum but is that reduced for a smaller loan?

HobgoblinBT

Nashefc said:

HobgoblinBT said:

When I worked for a high street bank the applicant’s bank account transactions were checked electronically.  They monitor the account for regular payments in, commitments such as regular payments such as standing orders and direct debits, the balance, overdraft facilities and an account staying within agreed limits and an affordability check.  The above is a factor as well as the responses to the questions on the application, and possibly other factors such as payments to known gambling sites generates a response to the application.  To quote Little Britain, computer says yes, computer says no or computer says maybe. 

No means no unless there are very exceptional circumstances which needed to be referred to an underwriter with a very good case to get the system decision reversed.  Yes is yes subject to common sense checks, eg if someone claims a salary of £30k, look for evidence,  and a maybe can be a yes, subject to passing common sense checks and/or an affordability check.
Hope that helps.

Thank you, for a smaller loan do you know how far back they would check. I know mortgages in like 3 months minimum but is that reduced for a smaller loan?

The bank that I worked only held relevant data, probably 6 years, but on occasions I saw some system lending decisions referring to historic loan or credit card debt with the bank where no information was available to view in branch.  I suspect bad debts are reviewed from time to time, which means that they remain relevant to the bank and within the 6 year time frame for data.   Hope that helps.

SeanG79

Nashefc said:

SeanG79 said:

jjdc said:

Ratesetter certainly do. They'll ask to link to your bank account before quoting to verify income and expenditure. Whether the automated process checks individual transactions, I'm not sure, but id doubt it.

Ratesetter didn't ask me to link my bank account for a loan circa 3 months back...

I see these popping up all the time SeanG79. How was your experience I see mixed reveiws but the soft check I was accepeted no problem

I had no issues, was quick and relatively painless. money took a day longer than the contract advised but during a pandemic this is understandable.

Nashefc

SeanG79 said:

Nashefc said:

SeanG79 said:

jjdc said:

Ratesetter certainly do. They'll ask to link to your bank account before quoting to verify income and expenditure. Whether the automated process checks individual transactions, I'm not sure, but id doubt it.

Ratesetter didn't ask me to link my bank account for a loan circa 3 months back...

I see these popping up all the time SeanG79. How was your experience I see mixed reveiws but the soft check I was accepeted no problem

I had no issues, was quick and relatively painless. money took a day longer than the contract advised but during a pandemic this is understandable.

That is great and did they start asking for additional info after applying like bank statements? And did your quoted rate change dramatically after applying?

comment_as...

I'm pretty sure they do. I used cashback websites to profit from betting and an employer found out about that from a credit check

SeanG79

Nashefc said:

SeanG79 said:

Nashefc said:

SeanG79 said:

jjdc said:

Ratesetter certainly do. They'll ask to link to your bank account before quoting to verify income and expenditure. Whether the automated process checks individual transactions, I'm not sure, but id doubt it.

Ratesetter didn't ask me to link my bank account for a loan circa 3 months back...

I see these popping up all the time SeanG79. How was your experience I see mixed reveiws but the soft check I was accepeted no problem

I had no issues, was quick and relatively painless. money took a day longer than the contract advised but during a pandemic this is understandable.

That is great and did they start asking for additional info after applying like bank statements? And did your quoted rate change dramatically after applying?

nope, nothing changed and no additional info requested, but there were no skeletons, so would not have mattered if they had asked for information.