Your mortgage lender will want to see your bank statements to use as evidence to help them assess how much you can borrow if anything at all.
The lender will look at your bank statements to confirm your income and regular monthly outgoings. In order to view how your financial commitments will affect your ability to repay your monthly mortgage payments.
After all, a mortgage is one of the most significant financial commitments you will ever make in your life. This is why a lender needs to know that you can handle your finances and be responsible.
There are different ways you can obtain your bank statement, such as receiving your bank statement through the post from your bank or going into your local branch and getting it over the counter. It’s common to see that people will retrieve a printable version from their online banking application.
Again, a lender needs to know you are responsible and reliable with your income. They will consider some factors. For example, using an overdraft occasionally is not necessarily a bad thing. However, exceeding your limit quite often is going to affect the lender’s trust in you.
Additional factors a lender will look out for are potential returned Direct Debits, which can indicate you are not reliable, especially if you don’t disclose any loans during the application stage.
Another factor that you need to be aware of missing any payments for personal loans and things such as credit cards. It’s more likely that a lender will lend an amount closer to what you would like to borrow if you can meet your monthly payment deadlines.
For some, customers end up stuck due to a history of gambling behind them. Gambling now and again is relatively harmless but constantly throwing large amounts of money. The lender will look at your case less than favourably. Regardless if you are making your money back or more.
for more information, read our ‘Do Gambling Transactions Look Bad on my Bank Statements?‘ article.
Various first time buyers in Doncaster and home movers in Doncaster have found that most lenders prefer to have at least three months bank statements from a mortgage applicant. Maybe, it’s time to change your lifestyle to have at the very least three months to improve your handling of finances.
Firstly, we recommend taking a very long break from the bookmakers and/or online gambling scene. This will benefit you mentally and give your finances some breathing space.
Secondly, do your best to pay off any current debts you have without using an additional credit card. Even the more minor things like reducing unnecessary purchases can help free up the extra cash to ensure you can pay all your bills on time.
Thirdly, for you to be more sensible, create a plan for yourself with plenty of time ahead of what you’re looking to achieve. The further away you go from debt and financial troubles, the better your chances with a lender.
If you’re a first time buyer, moving home, or self-employed, it’s always essential to keep your finances on track. Getting in touch for specialist mortgage advice in Doncaster can help you if you’re feeling unsure when it comes to bad credit history. We are here to further your mortgage journey by advising the best we can.