Bank Statements - Mortgages.

Tatters26

Just wondered what kind of things lenders look for on statements? 

I’ve been told by one broker it’s simply to check your salary matches your payslip and to see it going in on payday. 

Others say it’s scrutinised line by line for anything that could be a red flag. Gambling excessively would be an obvious one.

I have a mortgage application going through shortly and in the last 3 months have made 5 payments to PayPal for eBay purchases.

Would they ever ask to see a PayPal statement in reality? I closed my PayPal account a fortnight ago in an effort to tidy up anything that may appear on my credit file (as PayPal offer a credit facility now but I never used it) and you can’t get access to a PayPal account for a statement once it’s closed, and I’m worried I’ll be asked for one..

kingstreet

Some lenders don't even ask for statements. As a broker, I would peruse three months' statements and ensure the net salary credits match what's on your payslips and ensure your declared credit commitments match what you have disclosed.

Some lenders will scrutinise every transaction and ask about it to the nth degree. Try to avoid such lenders...

amnblog

If you are asked about half a dozen PayPal purchases you will be the first I have heard of.

Many Lenders do not ask for Bank Statements for most cases - when they do, what are they actually interested in?

1. As KS says do your salary credits match your wage slips?
2. Are there regular outgoings they were not aware of (perhaps another loan payment, child care)?
3. Are there sizeable lump sums coming in and going out that the Lender should concern themselves with?
4. If there evidence you are paying your bills or could there be another bank account they need to see?
5. Are direct debits bounced or has an overdraft been exceeded?
6. Is there evidence of gambling to a level that would be a concern?

Some Lenders with a manual process and staff to put to work will do forensic analysis of everything and then you may get a list of queries for numerous entries. Painful, and something you are likely to avoid when a Broker is handling your case.

Tatters26

Ok thanks both - it's really only the PayPal that worried me. As long as PayPal is over-looked I'm fine. It's not even like they were used for anything bad, but having closed the account if I'm asked for the PayPal statement, I cannot provide it.

I was sure someone may say they were asked and worry me, I would be grateful if any brokers on here can tell me if they've ever been asked to get PayPal statements from clients?

user1977

How big are these Paypal transactions?

Tatters26

£100, £150 and £200 and £24.99. That it, spread over 3 months worth of bank statements. 

amnblog

Tatters26 said:

I was sure someone may say they were asked and worry me, I would be grateful if any brokers on here can tell me if they've ever been asked to get PayPal statements from clients?

We have been in business longer than PayPal and have never heard of such a thing.

user1977

Tatters26 said:

£100, £150 and £200 and £24.99. That it, spread over 3 months worth of bank statements. 

I can't see that being of interest. Just looks like normal eBaying.

Tatters26

amnblog said:

We have been in business longer than PayPal and have never heard of such a thing.

Thanks! You do hear horror stories when you Google though but my MB seems confident too and said they won’t even glance at that. 

She said the only time they would notice might be if it was a set amount and regularly on the same date as it then looks a bit like a debt