Applying for mortgage - bank statement requirements?

howtolive

Hi,

Quick one - myself and my O/H have several accounts, one of which is a joint account of saved money which we've set aside to spend on a car/furnishings, etc. No additional money is to be saved to this account.

Our savings are across two other accounts, and we have current accounts each and I have another savings account too.

I also have a deposit account left over from childhood which I don't use and has maybe 70cent or so in it.

I understand we need to typically show 6 months statements.

Quick questions:

1) Do I need to disclose/ get 6 months statements for the unused deposit account?

2) Will spending from the joint account raise a red flag? All the while we will still be saving our usual amount per month to our savings accounts.

3) For my savings accounts, one statement covers 2 years - do I still need to show 6 separate statements for this account, even though one statement shows all transactions for 2 years?

Cheers!

Heroditas

howtolive wrote: »

1) Do I need to disclose/ get 6 months statements for the unused deposit account?

Not unless they specifically ask for them. They may find out you have the account but if they do, it's no big deal and if they ask, then just get the statement.

howtolive wrote: »

2) Will spending from the joint account raise a red flag? All the while we will still be saving our usual amount per month to our savings accounts.

No, they combine all spendings, savings etc to examine your ability to service the monthly mortgage repayments. What really raises red flags is payments to the likes of gambling sites or unexpected large cash withdrawls.

howtolive wrote: »

3) For my savings accounts, one statement covers 2 years - do I still need to show 6 separate statements for this account, even though one statement shows all transactions for 2 years?

Cheers!

That one statement that covers two years will be more than adequate.
They're looking for six months of data. That single statement includes two years so they'll accept that


I've been going through the mortgage approval process for the last while to try and move from our current house.
We're seeking mortgage approval with the bank where our joint savings account, my personal account and our joint current account are located.
A lot of it is box ticking and they have a good idea of your ability to pay based on your payslips and account information. What they're really looking for is weird or unexplained outgoings such as potential chronic gambling or repaying moneylenders that could affect your monthly repayments. Also, looking for potential moneylaundering.

Water John

Forget the dormant acc.
They want two things,
One is regular savings over six months. This can be taken together with rental if you are paying for accomodation, to show your ability to repay the mortgage.
The second is to view your spending patterns. They want to see you are a reliable mark. For example if their are ANY payments to betting companies, its a flag. Mostly, there is nothing to worry about in normal living, holidays etc.
No large impulse type spends.
My understanding is you spent some money from the acc dedicated to car/furnishings. That won't matter if you have a separate mortgage savings accs.
I don't understand your third point. They generally only need a six month statement.

MarkAnthony

We were told to disclose everything, tbh it made us tidy up quite a few account sitting around not doing much.

howtolive

Thanks all, much appreciated!

Water John

Water John wrote: »

For example if their are ANY payments to betting companies, its a flag.

While I think you are better trying not to have betting transactions on your account and for the last year or so I do all my lodging and withdrawing from my betting account in the shop I don't think is as big a deal as some makes out once you aren't a big gambler. I'd a friend get a mortgage recently and he had small lodgements every month on his statements and it wasn't even mentioned by the bank.

MarkAnthony wrote: »

We were told to disclose everything, tbh it made us tidy up quite a few account sitting around not doing much.

They can ask all they want but I've no intention of disclosing all my accounts when going for a mortgage. Main current account a main savings accounts is all that they need imo the rest is none of their business.

Fol20

Checking all of your account is their business.. They want full disclosure to see if you are a worthy customer. They are after all giving you a few hundred k..

Fol20

Fol20 wrote: »

Checking all of your account is their business.. They want full disclosure to see if you are a worthy customer. They are after all giving you a few hundred k..

They can check the accounts that are relevant any other account doesn't exist as far as they are concerned (once the account isn't in the bank you are applying to of course).

In any case I don't believe you are under any obligation to tell them about any account that is not being used as part of your application, just because they ask doesn't mean they should be asking. If some people are asked to jump they just ask how high.

MarkAnthony

I don't know how it's regulated here but I'd be very surprised if financial institutions can't find out whether they have all the info or not. Perhaps I'm being naive. On the other hand when I go and ask someone to lend me a huge some of money I feel a moral obligation to work with them uberrima fides.

MarkAnthony

MarkAnthony wrote: »

I don't know how it's regulated here but I'd be very surprised if financial institutions can't find out whether they have all the info or not. Perhaps I'm being naive. On the other hand when I go and ask someone to lend me a huge some of money I feel a moral obligation to work with them uberrima fides.

The fact I know of someone who recently didn't disclose having a mortgage when applying for another and it was never flagged tells me they know very little outside of what they are told . Obviously not something I condone but just using it as an example.

gaius c

I'd disclose all accounts, even the one with 70 cents in it because what they are interested in are the transactions in and out and not disclosing automatically makes you look dodge.

Whether you intend to use the money on the house purchase or not is immaterial and it will almost certainly hinder your cause if you inadvertently make the bank believe you're spending every red cent on the house purchase with nothing left over for other things, such as "a car/furnishings, etc".

gaius c

Reid Ashy Silverfish wrote: »

The fact I know of someone who recently didn't disclose having a mortgage when applying for another and it was never flagged tells me they know very little outside of what they are told . Obviously not something I condone but just using it as an example.

Mostly they are quite thorough nowadays. Got a call asking us about a previous mortgage that was paid off in full years ago before we drew down.

gaius c

gaius c wrote: »

Mostly they are quite thorough nowadays. Got a call asking us about a previous mortgage that was paid off in full years ago before we drew down.

When the time comes I'll be taking my chances with not disclosing all accounts anyway. I'm not advising the op either way that his own decision but I think people are far too quick run into the bank with their life story rather than be a it more savvy.

MarkAnthony

I'm not really sure how not disclosing all accounts is savvy or exposing my entire life story. In most cases they're dormant accounts we've just been lazy about sorting out - lazy being the operative word in relation to then not disclosing them. If however there is some reason you're not disclosing them then that's quite simply fraud.

If you're in the prep stages of saving to apply, why not simply tidy up the dormant accounts 6 months or more before applying?

Water John

I would be reasonably clear with a bank in relation to mortgage.
But I would not be as innocent in relation to business loans.
I would tell the bank what they need to hear. My priority would be getting the loan.

MarkAnthony

MarkAnthony wrote: »

I'm not really sure how not disclosing all accounts is savvy or exposing my entire life story. In most cases they're dormant accounts we've just been lazy about sorting out - lazy being the operative word in relation to then not disclosing them. If however there is some reason you're not disclosing them then that's quite simply fraud.

If you're in the prep stages of saving to apply, why not simply tidy up the dormant accounts 6 months or more before applying?

I've been prepping for quite a while as I don't know when I'll actually make an application it could have been last year or it could be another year or it could be next month, also I don't have dormant accounts. I have my reasons which I won't be going into here (nothing illegal or anything in case any assumptions are made).

Butters1979

Sorry i don't understand why you would want to hide any accounts? The only reason to was to withhold information of your finances that would negatively effect your application. If there is nothing wrong with the accounts in that sense what does hiding it accomplish? What do you think the bank will do with this extra information they have about you?

You are asking an institution to loan you a really large some of money, why would anyone think it's ok go into that agreement without been honest?

To OP, if there is nothing bad with that account, and it sounds like there isn't, just tell them about it, if they ask for a statement just send it to them. It's not some data stealing conspiracy. And if they do figure out you aren't telling them everything, they may well get suspicious. I know I would.

howtolive

Thanks all, what I'm going to do is just close off the dormant account, its unused and of no real benefit to me at this time.

slowjoe17

I bought this year with a large deposit and therefore low loan-to-value and a record of significant saving from my salary, using the bank my salary goes into. I was borrowing significantly less than the agreement-in-principle offer.

I did not produce details of accounts and credit cards with another bank, and wasn't asked for them when I used them for my deposit.

What I'd say: be more inclined to disclose:
1. if you don't bank with the mortgage provider
2. if you are close to the LTV or salary limits
3. if you have any other issues that might make your application marginal (like credit problems).
4. <MOD SNIP >

Sono

We have money from time working abroad but don't have any statements from the account as its closed down now and left there a few years ago, will the banks query this or should it be ok? They have given us approval in writing for x amount but I'm sure they can ask any sort of questions now that we have found a house we want to buy?

Water John

BOI tend to be more thorough. Maybe that's being more prudential.

MarkAnthony

Sono wrote: »

We have money from time working abroad but don't have any statements from the account as its closed down now and left there a few years ago, will the banks query this or should it be ok? They have given us approval in writing for x amount but I'm sure they can ask any sort of questions now that we have found a house we want to buy?

The account is closed down and the money is still there

All this messing with money here and there is grand until the house you want goes a little over what you have in Ireland and suddenly you have to explain where the extra 10K came from. You're better off just getting everything organised and declaring everything.

Sono

Water John wrote: »

BOI tend to be more thorough. Maybe that's being more prudential.

That's who we have approval with, hope it's not an issue but it's quite possible it will be.

Sono

MarkAnthony wrote: »

The account is closed down and the money is still there

Sorry I wasn't clear, the accounts are closed and we transferred the money across a few years ago in one lump sum to an Irish bank.

MarkAnthony

That's fine, just give them a statement of the Irish account. They may ask where it came from, verbally telling them if it's a few years should be fine.

Sono

MarkAnthony wrote: »

That's fine, just give them a statement of the Irish account. They may ask where it came from, verbally telling them if it's a few years should be fine.

Thanks for that, was worried it could be a problem.

Jen44

gaius c wrote: »

Mostly they are quite thorough nowadays. Got a call asking us about a previous mortgage that was paid off in full years ago before we drew down.

Would agree with this we got a call asking why my husband was registered as a business owner. It was a business name he set up years ago in case he wanted to go out on his own. He never used the name and never even opened an account etc in its name, there wasnt a cent used in relation to it at all, but they still found out about it and wanted explanations.