me and the mrs have just had a offer accepted on our 1st house! went for meetings to sort a mortgage in principle etc and all was ok,good credit scores,good wages,deposit saved etc etc and they are willing to lend us way more than we want!
anyway now our offer on a house has been accepted we have to go and sign on the dotted line etc! we have to take 3 months wage slips (which we did when we went for 1st meeting) but now they want 3 months bank statments aswell? why is that as all credit checks etc have been checked to gain the mortgage in principle??

sorry for such a long read for a probably simple answer!!!

 

Long gone are the days of "easy money"........they just want to make sure you can afford the payments. In principal means they are minded to lend you the money nothing concrete.


Shaun

 

on the quiet they probably want to see proof of monthly outgoings , it's all well and good earning good money ,but they like to see what your monthy expenditure is

 

I thought it was standard procedure, 3 months payslips, bills and bank statements. Did the same back in 1999 for my first property, again in 2004 and again in 2006 when I remortgaged with another provider.

 

They also check your bank statements for things like regular betting transactions to assess risk

 

You can prove you earn 10k per month easily, but without bank statements how do they know you don't **** 9k up the wall or are paying off a large loan on a car or something for instance.

It's just to make sure you can afford it.

 

Tbh this is a fallacy, i used to work in a bank and the statements are simply to prove you can afford what you are about to take on.
They really dont care whether you gamble your spare cash, spend it in the local knock shop or put it to more constructive use.

 

Local knock shop, you mean there are more constructive uses than that

 

ahh cool,thought it would probably be something like that or to see that the amount your pay slips say actually is what goes into your bank!!!

 

i was amazed recently when a friend of mine (not uk resident and only been in the country a few months) bought a house on a mortgage and needed a £20k deposit so they got a loan for £20k on top of the mortgage an just moved in a few days ago, I cant believe how lax things were....

 

easy to get a loan, if you tell them its for a deposit for a mortage, poof goes ur approval . However tell them its for a car , home improvements or even a boob job and jobs a good un ( mind id be wanting some big hooters for 20k! )

 

When we did our remortgage a few months ago,

My bank wanted no details from me (They offfered the mortgage)

From my Mrs, it was banks statements & pay slips, if i recall.

Then bank statements were to show the salary was actually paid into the account, and matched the pay slips etc .

Mart

 

PS> Once you've got that huge mortgage over ya head, it will take some time adjusting to the shock that you're neck deep in debt

 

Yes but you need somewhere to live!

 

funnily enough I've been getting mortgages sorted this week: its amazing what they will lend (we already have a house).

I started on monday and the same day had proof emailed to me of a mortgage.

toying with buying a repossession, so need to prove to the vendor we have funds to complete in 28 days.



watch yr interest rates: it might look good and affordable: but that'll be on 2.49% probably.

I can remember them being at 18% in 1981 ? then up to late teens again in late 80's.

in 1999, best i could secure on a hse was 7.7% I think.

the current period we are in is an unusual one.

get on money supermarket and use their calculator to see what you might really pay, if rates go up.

 

Are you saying you have secured a mortgage at 2.49% ??

 

I think HSBC are offering a Lifetime Tracker at around 2.59%?

Cheap money and easy money if deposit is good.

The BIG problem comes when you receive the valuation of the property!!

Let's say you agree to pay £200k for a property, you borrow £160k and have £40k to put down ..... pretty standard numbers these days. A LTV of 80%.

The valuation comes back that the property is actually only valued at £180k - now, you are borrowing £160k on a Property valued at £180k .... that's a LTV of 87.5% (if my maths are right).

A mortgage will be offered at 80% LTV - but not at 87.5% LTV .... simply because House Prices may well have 10%+ to fall within the next 24 months.

Then chains break down .... this is happening all over the place, house sold - valuation takes place - house back on market - chain broken.

Nothing will change until vendors become realistic with prices and until buyers have the ***** to offer WELL off asking prices and walk unless accepted

But, I do realise that emotions are tied up in houses and the whole 'home' processes.

 

House prices rose last month except the North East .!

 

Hmmmmmmmmm .............. but, over the year they fell in ALL areas - blips happen either way ... the trend is downwards.

 

They ask for statements to show your pay lands. Quite easy to create false payslips.