Bank statements

Rodis33 · 18 March 2017 at 12:12AM

Hi,

This is probably really obvious but what about to complete a mortgage application but with a bank that I don't already bank with. They have asked for my bank statements from my current account. I am just wondering what do they use the statements for? Is it just to see what my normal monthly outgoings are or something less obvious than that?

I know it probably seems like a silly question and I have nothing to hide but more curious than anything.

Thanks in advance

glosoli · 18 March 2017 at 12:32AM

Mostly to see your account conduct, and to ensure your expenditure roughly tallies up with what was mentioned during interview. It can be a default requirement in certain circumstances also, such as high loan amounts, or high loan to value amounts, or with some lenders, in every occasion.

Rodis33 · 18 March 2017 at 12:47AM

That's great, thank you. I had a bit of an erratic month expenditure-wise so was worried it might affect or they might question my account handling, but don't see why it should?

Futuristic · 18 March 2017 at 1:55AM

Rodis33 wrote: »

That's great, thank you. I had a bit of an erratic month expenditure-wise so was worried it might affect or they might question my account handling, but don't see why it should?

They usually ask for 3 months and it should be fine, worse case they'll ask for 6 months but again shouldn't be a issue. I maxed out my credit card and it was showing on my file but they didn't question it as other months was low and repaid on time.

Rodis33 · 18 March 2017 at 2:18PM

Thank you. I just didn't want them to start unpicking everything because I had an unusually expensive month (within reason) and they cause me a problem as a result of it.

GlamGirlie · 18 March 2017 at 3:09PM

Hi, no they won't pick it all apart, they look at general spending and affordability, eg if you say on your application your food is £200/m but you actually spend £600, and your car/fuel bills are £200 but you actually spend £500, then you're spending a lot more than you declared on the application and this might affect affordabilty.

They will also be looking at gambling type transactions, and to check you haven't got a load of undeclared transactions eg mortgage, coucnil tax and utility bills for a property you 'forgot to mention' or child maintenance bills you 'forgot' to declare on the application!

Rodis33 · 18 March 2017 at 3:41PM

Thanks. That all makes sense. I guess it's the possible undeclared stuff that they need to be sure of. But we don't have those worries thankfully. At the moment we have a lot of disposable income which is why I had a month of high spend, but it was just before going on holiday and had a few PayPal transactions which actually is another point, do I need to justify those too, or will they just accept them as they are?

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