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Mortgage affordability - how many months of income proof banks need nowadays?

(13 Posts)
antimatter Mon 01-Feb-16 00:09:07

What do mortgage companies or banks look at when assessing financial situation of applicants.
I heard that we would need to provide several months of bank statements.
How many months?
I also read that they have access to your statements from the past. Have they done it in for someone?

annielostit Mon 01-Feb-16 07:21:23

www.moneyadviceservice.org.uk/en/articles/how-to-apply-for-a-mortgage

There's info on the right move site but I can't find which page.

BowiesJumper Mon 01-Feb-16 07:46:47

We're at the initial stages and have been to 6 months of pay slips and 3 months of bank statements.

TobleroneBoo Mon 01-Feb-16 08:00:38

Every time we have had a mortgage agreed or extended, we have been asked for 3 months of bank statements

antimatter Mon 01-Feb-16 11:24:35

Thanks BowiesJumper and TobleroneBoo, I couldn't see anywhere how many months of banks statements and payslips they banks needed just the general rules as per link above from annielostit.

Last time I applied for a mortgage was over 19 years ago!
I know rules have been tightened in 2014.

annielostit Mon 01-Feb-16 13:15:40

www.barclays.co.uk/Helpandsupport/Yourmortgageappointment/P1242676499426

antimatter Mon 01-Feb-16 13:25:56

Thanks a lot annielostit you are a star smile

sparechange Mon 01-Feb-16 13:38:30

3 months is standard, but they might ask for more if you have debts or variable income (eg lots of commission from work), or are asking for a particularly large mortgage.
I think that gets requested at underwriting rather than application stage, but there is probably a MNer who is a broker and will know more

Sgtmajormummy Mon 01-Feb-16 13:42:26

The most recent three months' salaries and last year's income tax return in my case, but I am doing it with my own bank so no doubt they'll be checking the cash flow situation too.

antimatter Mon 01-Feb-16 14:43:44

We are both on FT salaries, uninterrupted work pattern, previous mortgage in both cases.
I think I have to assume it will be 6 months.

thecherryontop Mon 01-Feb-16 20:58:00

I applied recently via a broker and although I had a lot with me they only needed 1 plus my p60 -that was for nationwide -I believe Halifax also request 1 -apparently their criteria has changed very recently. Hope it goes well.

lisbapalea Mon 08-Feb-16 16:47:49

This is interesting to read! We're just about to apply to extend our mortgage with Santander (prob by £60k) but in the last month we have received £20k from MIL as part of an inheritance - we have moved that straight into our savings account and that will be added to the £60k for our home improvements. Will that look weird??

January is a funny month for any mortgage company to look into though, isn't it?! Jeepers - we really do need to think about our expenditure as I totally hadn't thought about them looking at our bank statements, just looking at our payslips and then believing what we put into the budgeting sheet they have!

Other question is that if we apply for the extra but don't want to draw it down for a couple of months, say in May or June, would they re-check the status quo before we draw it down, even if it was approved in Feb? Husband is thinking of switching jobs but I want him to stay put until we apply so we have consistent pay...

1981fkr Mon 08-Feb-16 18:28:30

We switched to Halifax and they wanted 3 months wage slips plus 3 months bank statements showing the balance change once the wages have been paid in ( as originally I just got a print out of credits for the last 3 months)

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