When lenders make a request for your bank statements, you could expect them to look for various things. In any event, their main goal is to evaluate whether you can balance out your money in a responsible manner and keep up to date with your monthly mortgage payments.
Our Mortgage Advisors in Cardiff have received numerous enquires where applicants inquire where Gambling transactions look bad on their bank statements.
Here Malcolm has compiled a video to summarise the following article in a video format.
Many individuals can see gambling as a conventional hobby. Please remember that even gambling advertisers encourage consumers to play responsibly, and that’s the most essential thing to bear in mind when you apply for a mortgage.
While at the same time it is not a lender’s job to tell you how to be living your life, how to devote your money, or indeed to advise on the moral rights and wrongs of betting, they do have an obligation to lend responsibly.
Suppose lenders need to prove to the regulators that they are making careful lending decisions. In that case, it isn’t completely unreasonable of them, therefore to expect the people to whom they lend to adopt the same approach when it comes to their finances.
Take a look at it this way, If you were lending your own money would you lend it to an applicant who gambles or the one who doesn’t?
It’s not illegal to gamble, no damage as a result of having the odd gambling transaction on your bank statements, it doesn’t necessarily mean you will get refused for a mortgage.
Nevertheless, the lender will take into account whether these transactions are sensible and responsible. Furthermore, they will mainly look at the regularity of these transactions, the amount of the transactions about the person’s income, and the effect upon the balance on the account.
If these transactions are infrequent small amounts that make no substantial impact on a regular credit bank balance, then they are not likely to be considered as necessary. Still, if you bet most weeks or you get continuously overdrawn. The lender, therefore, expects to see that as being reckless and decline your application.
From our own experience Lenders are looking at your bank statements to illustrate how you can manage your money and to help them determine whether this gives them either the trust that you are financially sensible or the evidence that you are not.
In any event, lenders are financial institutions, both directly and as part of a wider group. Often sell current accounts, overdraft facilities credit cards, and personal loans. So realize that these things can all play a role in prudent financial planning. The most important thing for a mortgage applicant is how these facilities get managed.
For instance, having an overdraft facility and occasionally using it, is not inherently a bad thing; regularly exceeding the overdraft limit – not so good. Consequently, lenders will look for excess overdraft fees or returned direct debits because these would generally show that the account is not being well conducted.
Other things to look out for include credit transactions from payday loan companies; undisclosed loan repayments. If you said on the application that you have no other loans. But there appear to be regular loan payments, and this could be a problem.
They would look out for any missed payments; finally, they might also consider how much of a typical month gets spent overdrawn – i.e. if you only go into credit on payday and for the rest of the month is exaggerated, how sustainable is this mortgage?
Be sensible and, if it’s possible, plan. Usually, a bank would ask for up to three months of your most recent bank statements. These will show your salary credits and all your regular bill payments.
So, if you know you’re likely to want to apply for a mortgage in the not-too-distant future, try to make sure that you avoid any of the above pitfalls. Take a break from gambling for a short while and work on presenting your bank account in the best possible light.
Your Mortgage Broker in Cardiff can help you as some lenders may ask for fewer bank statements than others. Or certainly, some may not even ask for them at all. But, even these lenders would reserve the right to request bank statements in certain circumstances. So your best bet (no pun intended) is to be as prudent as possible in the run-up to any mortgage application. Remember, if you do gamble, please gamble responsibly!
Suppose you are a First Time Buyer in Cardiff who doesn’t know a lot about mortgages. It would help if you got some specialist advice from a Mortgage Advisor in Cardiff. They will guide you through the whole mortgage process and help you with your application and get you on track. So that lenders will be impressed.