Disclose all bank accounts with mortgage advisor

[sassyx]

Just that really! My partner and I have separate banks accounts and also a joint account. Our mortgage advisor so far has only asked us to provide our own personal bank statements. Do I need to disclose about our joint one? All our bills come out of our joint account

Of course you have to disclose, how could you think you could hide something like that?

@sonofrageandlove because it's been 2 months since and they've only asked for one current account for each of us. Was not going to hide it all

@Spirallingdownwards I have about 5 accounts inc joint & current and they only asked for details of one.

@

Surely the mortgage company will check out your finances before offering you a loan, lying to the broker won't help. The mortgage company will check everything and check all your credit reports, you are just shooting yourself in the foot, you will not know how much you could actually get and you won't get what the advisor thinks you should.

@stripedstripes oops sent before I typed!

how can you deem it unfathomable when you have no idea what childcare we use, how often and what area we're in? 😂

Thanks for answering my question. As many above have answered the same, Il be sure to disclose!

@twomanyfrogsinabox can I just say I have not at all lied to the broker! Ive given everything they've asked for, I've not purposely hidden anything, it's only recently our situation has changed and as I've stated in a previous comment, it was completely unforeseen.

But once they are in school you could still have sizeable childcare costs.

I’m saying that a mortgage lender would find this very low and the reason they reduce your borrowing ability so much based on childcare is that it mostly costs more and it would cost more of your £2k arrangement fell through. I don’t even have kids and I can comprehend that. Good luck with the mortgage app.

@mothsandgoths they were fully aware I had a dependant and nothing was taken off, well not 50k anyways. It was only once I added childcare fees of 2k annuall, so no it wouldn't as they only ask for regular monthly outgoings.

@stripedstripes surely it should be based on my monthly payments and not the fact that it "mostly cost more" and why would it fall through? Why would they even factor that

no they wouldn’t? I really doubt an underwriter would go into that much detail on if childcare costs are too low, there’s many explanations such as family members helping

They seem to have set amounts for different circumstances OP.

I'm a mortgage underwriter. The bank I work for mainly ask for bank statements to show your salary going into your account so we specifically ask to see statements from the salary fed account
We likely wouldn't ask for additional statements on majority of cases
We also don't really look too much into how much money is left at the end of the month like someone suggested
We look for salary credit, any large sums in or out, any undisclosed debt, if you're within overdraft limit, if there are any returned items, excessive gambling etc. Not bothered about how much you spend in Costa or on clothes shopping
However you will have been asked about childcare so if this has changed you need to advise your broker to let the lender know
But I see so many people who try to hide childcare costs, in fact it's really not uncommon for people to hide children full stop. But then stupid enough to supply bank statements showing they get child benefit

@Jmaho thank you this is very helpful!

@Jmaho can I ask, would being in overdraft stop us getting a mortgage? My partner has been in hers a lot due to loans etc. we came in to a lump sum of money due to selling an inherited house which is why we are now able to buy and have paid off all loans, this was only recently though so last few months haven't been the best!

Yes you will need to disclose joint bank account. Unfortunately childcare will come out of your affordability. Can you pull the child until mortgage application approved?

As someone who works for a broker please disclose all information- I know you've said you will now but to anyone else reading... please! If the amount is extremely low and you have entered full time earnings an underwriter may well question it, especially if it is an income stretch or otherwise unusual case, and usually its because extended family are helping etc.
If you haven't shown bank statements showing utility bills etc being paid im very surprised the broker hasn't questioned it themselves.
The truth always comes out and its less painful and costly for everyone the sooner into the process the better.

I am sorry for your loss OP, and wish you the best of luck getting your mortgage sorted.

@sassyx can't speak for all lenders but we see loads of cases with overdraft usage it's very common. As long as you're within your limit and there are no exceeding limit fees it's generally fine.
Would be more of a concern if the limit is huge and you're up to the max amount constantly and you're wanting to borrow more or you're living with family as then it's a case of how are you going to actually pay the mortgage

Outside of the Ops situation, would the OD not count as outstanding debts? It’s a form of unsecured lending after all?

For us it depends on the amount. So again if its a larger limit and we can see you're constantly using it then yes we would make a deduction but only a small one i.e 2 to 3% of the balance so if you're constantly using a £2k overdraft to the max we'd knock off £60 max a month
If we've got 3 months bank statements and you use it by a little a couple of times we wouldn't bother. Just on a case by case basis. We tend to completely ignore it when it's below £1000 unless the limit is exceeded. It depends how close we are on affordability also.
Generally seem to find that majority of people who max out huge overdrafts usually have a lot of unsecured debt too and I work for a very "clean" lender so those sorts of cases often don't get through credit scoring due to them being what we class as over indebted.
I worked briefly years ago for a sub prime lender and my jaw was on the floor when underwriting a lot of the cases!

ah interesting.

i don’t get involved in underwriting but I’d be super curious on the subprime lender, I’ve dealt with some of the fallout there in a previous role and exactly as you said, jaw on the floor the subprime, debt consolidation mortgages, interest only on a self cert basis, pre 2008 of course

Not showing an account to a broker isn’t exactly a major offence. My broker has helped plenty of self-employed friends who had to be a bit creative with their finances to secure the mortgages they needed as long as you keep up with the repayments, mortgage lenders aren’t too concerned either. Let’s face it, wealthy people find ways to avoid paying tax all the time, yet we end up criticizing those who are just trying to get ahead.

Well a broker shouldn’t be fudging income in order to get a mortgage

what I think likely happened was on the portal they went to a lender they know accepts funky income streams, normally with a higher rate (there’s a correlation between risk and rate)

Isn’t that what you have a broker for ?
😅