What do the mortgage companies look for on bank statements?

[frazzeled]

We are in the middle of attempting to extend our mortgage.

We have been asked for one months bank statements - are they just looking to confirm our income and that the budget planner we have provided confirm each other? Basically I had racked up some credit card debt that a very kind friend has paid off for me. Will the extra money that has come into my account in that month adversely affect my application? My credit score will look better I'm assuming as most of my debt is now paid off. The bulk of the application will go on my husbands salary as he earns much more than me.

The process has got way more complex and very anxious about anything that will get us turned down.

Any credits into your account are going to be questioned. We had a deposit from DH's mum to cover her part of Christmas (we shopped for her) and the underwriter raised it as a concern and asked us why it was there.

That was my concern. Husband doesn't know about the 'loan' but I'm doing the mortgage application so hopefully can explain it directly.

If you're going through a broker they can make a note for you... One of the deposits into our account was quite large (from my parents) and so they wanted certified copies of ID, a utility bill and a letter from them. It's been a loooooooong road!

It's been a long time since I applied for a mortgage but the mortgage broker (our own bank) asked for permission to view our account over the past month or two. Most of our bills are paid by direct debit so the broker had a fair idea of our monthly outgoings within a matter of minutes.