This may seem like a odd title for a blog post but it is so important you understand how to get your bank accounts ready for mortgage applications.
When you apply for a mortgage you will need to provide at least 3 months worth of “clean” bank statements to your lender. Your lender will check these bank statements for any unusual activity and check that your are eligible to get a mortgage.
There are lots of things that can hinder your chances of lenders giving you a mortgage.
So if you are starting the moving process or wanting to find out more then keep reading as I share a few ways to get ready!
*Everything written in this blog is informative and not actual advice please consult a mortgage advisor*
Pay all your bills on time
This is a given, paying your bills on time will show the banks that you are able to keep up with payments.
Failing to pay your bills on time can show lenders that you are not able to keep up with payments. A missed- payment default counts against you for at least a year!
If you are struggling to pay your bills perhaps you need to take a look at your budget and ways in which you can reduce your outgoings.
Cut back on spending
This may sound simple but it is actually really hard to do. Cutting back on spending is crucial to making your bank statements look better.
Lenders will check to see if your income matches what’s on your payslips/ bank statements and examine your recent spending. If your spending exceeds your income, this could be one of the reasons why you will not get accepted for a mortgage.
Creating a budget and sticking to that budget will help you, reducing your spending will in turn reduce your outgoings. Showing lenders that you can afford to pay your mortgage payments each month.
Stay out of your overdraft
If you are constantly using your overdraft this could show lenders that you are living beyond your means.
It has been reported that some lenders will not tolerate you if you have been in your overdraft the last 3 months.
So try to budget correctly and not use that overdraft as this can seriously affect your mortgage application.
Stop gambling online
This is a massive no no! Having gambling transactions from online bingo sites, betting shops etc can seriously hinder your application.
A lot of lenders will see these transactions as suspicious and question you about it.
A friend of mine had one transaction of £50 for online bingo and her lender questioned her about it.
So do try and avoid using gambling services in the 3 months leading up to you applying for a mortgage.
I hope this information helps you become mortgage ready dont forget to consult with a mortgage advisor for more information.