mortgage - Recent bank statements required

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oludayo20

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I recently apply for a mortgage and being a first time buyer and based on our joint income (me and wife)We were offered 100%,but part of the reqirement is 3 months bank statement,which actually gives me some concerns,because recently i've been involved in some investment which is taking a huge chunk out of my wages every month leaving my account empty at the end of every month!the qestion is will this bank statement be acceptable to the mortgage providers?and by the way what do they really want to see in the bank statement?
 
Re: mortgage.

They are mainly looking for referral charges showing you are not operating your account correctly and to see if you have any loan repayments coming out of account. If you have none of these I wouldnt be too worried, a reluctance to supply it will be more suspicious.
 
Re: mortgage.

Why not give statements from just over 3 months ago ? Not sure if they have to be the most recent.
 
Re: mortgage.

What kind of investment? Why not just show the statements from the investment as an addendum to your application?
 
Re: mortgage.

Not all lenders require bank statements in any event. IIB rarely ask for statements only in circumstances where one borrower is self employed generally.

You shouldn't be too worried- even if it is an investment proof of this will cover off any deductions from your account.

Best of luck with the 100% mortgage in the current market!
 
As long as you don't have any referral charges/unpaid DDs or payments that you didn't disclose to the lender (loans, maintenance etc) you should be fine. It is ok to have little or no money (or even to be overdrawn as long as you have an overdraft facility) in your account, as long as your income is sufficient to meet the repayments in accordance with the lender's criteria.
 
If they have any questions about it they will just ask for proof of where the money is going...... just show a statement from the investment or something (unless its really a credit union loan you are hiding , thats a different story)....
 
I think banks want statements to analyse your spending patterns (i.e. to see will you have the money at the right time to pay the mortgage and other bills). If you are dealing with a broker, I'd talk to them for advice. Otherwise (since you won't get the mortgage without the statements), I'd send in more that three months to show that this 'lack of funds' is a recent and temporary thing. I'd also add a cover letter to explain the transactions and to show that you will be capable of meeting your mortgage obligations.
 
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