What do banks look for in statements during mortgage application?

[Somethingsgotthagive]

I assume the main stuff they are interested in is debt, overdraft and other regular expenses like childcare etc.
Do they care about the amount you spend in shopping or eating out and how much you have left at the end of each month?
After savings a chunk of incone on payday, I leave some disposable amount to use throughout the month (together with other money to pay for bills etc) to spend on family days out and the occasional shopping (notjing fancy but this months I spent £100 on DC for new clothes and shoes and £100 on myself for work clothes for example. Would they see these types of regular spendings like red flags?).
I don’t usually have much left in my main account the day before payday but I do save a chunk of money first thing when salary comes.

It’s been a long time since I worked in banking, but it was confirming regular income matched what you’d declared on the application, similarly any debt, we’d often come across HP agreements that hadn’t been mentioned that impacted the affordability. They really don’t care if you spend £100 on shoes as long as it’s obvious you’re prioritising debt/mortgage payments and are not running a massive overdraft. It’s not to judge how you spend just that you are a good credit risk.

They are confirming that what you are saying is true so will be looking for proof of your income as well as any debts.

They also look for gambling transactions and anything that may seem out of place such s as large deposits into your account.

they don’t care about everyday spending.

They are confirming your salary matches, any debt not recorded, total income versus expenditure.How much you spend eating out, supermarkets, to bills. To buy alcohol. Last time I did a home loan my broker (I’m in Australia) that itemised exactly how much I spent on things per month…. It was scary to see as I spent more at the supermarket than my DP hmmm 🤔

If you are going for a loan in the future reign in your spending- that’s what I do as I can pay my loan but I’m a bit of a spender on DC’s clothes and SHEIN etc

They want to see that you earn more than your new repayment is and you are saving a bit each month. They aren't overly worried about one off payments but I was advised it was better to withdraw £50 and buy coffees, lunch etc than all those separate payments plus demonstration of a set "fun money" budget