Mortgage application- bank statements

[BubbleSausageTheSecond]

We're in the process of applying for a mortgage with Nationwide, and they've asked for just 1 months bank statement. Its not been a great month, as we've had to pay some solicitors fees up front, and also the car had it's mot and needed new tyres, so we've ended up in our overdraft.
I suppose what I'm asking is what are they actually looking for? I don't think it's fair to only look at at 1 months worth, it's not really a true reflection.
Just to add as well, we currently have some credit card debt which will be paid off from the sale of our current house, so will they take into account that those payments won't be coming out when the mortgage starts?

It's interesting that they've only asked for one month- it's been suggested that under the new MMR regulations they may require up to 6 months.

Is this a full application or for a decision in principle?

It's not possible to comment on how your credit card debt and overdraft will affect the application but it won't do it any favours.

If your salaries are low and/ or you loan to value ratio is high, the lenders may conclude you might not be able to afford a mortgage if you need debt to cover your living expenses (with the exception of the solicitors fees, the other expenses you mentioned aren't out of the ordinary).

They're looking for evidence of regular income and outogings. Ask to talk to their mortgage advisor in person rather than just sending along a bank statement.

This is for the full application, have spoken at length with their mortgage consultant, it's all come back as affordable after giving them all our income/outgoings. We've already sent wage slips in, then got a call yesterday saying they want the bank statement.
Suppose we'll just have to send it and see what they say.

Why don't you send them 3 months worth anyway, at least that proves the last month was unusual.

I had to send 6 months worth and get overdrawn at the end of the month and did for each of the 6 months. However I had no problems at all - when I spoke to the advisor he said they were looking to match payments made by my employer as shown on my payslips to my statements and that was it. Also any overdrawn data were all within an agreed overdraft limit. I don't think you need worry as long as the statements tally with what you have disclosed on your application. Good luck!

Hi I am in this industry. Standard nationwide policy is one statement plus payslips. Write an explanation on the bank statement for the underwriter next to the car and solicitors. Ie New tyres. Moving costs.

Your credit file usually shows your overdraft use so they will know if it a one off or a regular occurrence. So only say you don't normally use it if genuinely you don't normally use it.

Credit cards are fine with nationwide if they are being cleared. However if they are massive then you are building a picture of yourself and attitude to money. They also will consider overall indebtedness and how much access to cash you have, (ie do you have loads of open credit cards which you could run up debt on at the drop of a hat). Much of MMR is still very new and a bit vague as to what is/isn't allowed.

If you are declined don't get too down, go and speak to a broker, speak to two brokers and see who you trust most. Yes it was possibly cost you £300 when you apply but they give you guidance and a good one will tell you truthfully any concerns they have when applying. Different lenders have different policy (some don't always check bank statements - contrary to media belief).

Hello,

We did our full application last Monday with nationwide and they didn't even ask to see our bank statement! They did however ask for 1 wage slip but we took past 6 months worth (they ended up copying last 3 months).

If you are that bothered why don't you take the last few months? They will most likely be looking at wages etc going in I am guessing

Last time we changed our mortgage we had a similar situation and the lenders rang me to find out what some items were. They were happy once they discovered that they were one off payments rather than regular outgoings. Hope you get it!