Mortgage advice

Bigpot270

Hi I will be applying for a mortgage in the near future. I currently save 1000 pounds a month and transfer that into my savings account each month. By the time I apply I will have 25000 saved. How many months worth of bank statements do they look at and how many months worth of savings account statements will they look at for source of deposit? 

K_S

@Bigpot270 There's no hard and fast rule. Lenders will often depend on the solicitor to confirm that the source of deposit is as declared.

Every solicitor will have slightly different processes, and they will tweak it according to how 'risky' or not the overall case is. An example -

Just to be clear, the above is simply one example from a random conveyancer and I would recommend waiting until your solicitor asks before providing any statements or other documentation.

Bigpot270

Thanks for your post by the time I apply I will have 5 good bank statements where I have cut my spending to tidy it up. But I will have more good savings account statements as on my savings account statements you can see I transfer 1000 pound a month in from my current account. Would you recommend I wait a extra month so I have 6 good bank statements? 

Bigpot270

K_S said:

@Bigpot270 There's no hard and fast rule. Lenders will often depend on the solicitor to confirm that the source of deposit is as declared.

Every solicitor will have slightly different processes, and they will tweak it according to how 'risky' or not the overall case is. An example -

Just to be clear, the above is simply one example from a random conveyancer and I would recommend waiting until your solicitor asks before providing any statements or other documentation.

Thanks for your post by the time I apply I will have 5 good bank statements where I have cut my spending to tidy it up. But I will have more good savings account statements as on my savings account statements you can see I transfer 1000 pound a month in from my current account. Would you recommend I wait a extra month so I have 6 good bank statements? 

K_S

@bigpot270 The example I've cited is just that, an example. Your solicitor may be happy with 3 months statement or may need to see 12 months, it's impossible to predict.

In the main, lenders don't care about discretionary spending (anything that can be stopped) so whether or not your bank statements show you spending £50/month or takeaway or £500, it shouldn't make any difference.

Bigpot270

K_S said:

@bigpot270 The example I've cited is just that, an example. Your solicitor may be happy with 3 months statement or may need to see 12 months, it's impossible to predict.

In the main, lenders don't care about discretionary spending (anything that can be stopped) so whether or not your bank statements show you spending £50/month or takeaway or £500, it shouldn't make any difference.

I’m happy handing over up to 12 months worth of savings account statements. But my bank account statements i am currently tidying up as  I lend money to friends sometimes around 200 pound a month via bank transfer and I read that’s a big no no for mortgage application? I have stopped this now so will have 5 good bank statements.