A mortgage advisor has said that there is one issue many people don’t think about
A mortgage advisor has shared “reg flags” that could appear on your bank statement, and if you’re moving home that your bank does not like to see. According to the experts, A Little Mortgage Advice aka @alittlemortgageadvice, there are many that many don’t know, yet they could be really important.
Angela Little explains: “Quite a big one people don’t think about it is make sure that what is on your payslip, your net pay on your payslip, matches what goes into the bank. This doesn’t always happen but it’s really important.”
In her second tip, all about overdrafts, she explains: “Most people live in their overdraft, that isn’t an issue, it’s when you go over your arranged overdraft that it can cause problems – bounce direct debits, return direct debits, standing orders that have gone out but come back in because there is not enough money.
“Obviously if these payments are not being met the bank, or lender, will think ‘these people might do this with our mortgage’ so it’s really important to set up direct debits and make sure the money is in.”
If you gamble, Angela says that “it’s not an automatic no” but it is frowned on by lenders. Regardless of whether you win a lot or not, the lender will only look at what you spend out. If you have the odd football flutter on a Saturday, “don’t worry”, she says – admitting that many people do this, including her husband.
However, if you do games such as lottery apps and the lender sees these every day, even if it’s just a fiver, “they are going to add that up over a month and call that commitment and then that comes into your affordability”, the expert explains. “Try and keep gambling to a minimum.
“It’s not a good thing to have on your statement if you are looking for a mortgage,” she adds. “When we do your mortgage application, they’ll be looking for everything that we’ve declared so if we say Mr Smith earns X amount a month and he pays out this on his commitments, but then they see this £400 a month maintenance going out to an ex partner, they need to know about that.”
The mortgage advisor further says that you need to be transparent with them to try to ensure you get accepted – even if you think they don’t need to know about it. That way you can work out what needs to be done and if there is anything you can do to help you secure a mortgage.
