When friends transfer money to each other sometimes they put in joke references or something naughty and unprintable.
What many potential borrowers do not quite realise is how seriously mortgage underwriters look at things that many of us take for granted. Ultimately, they are looking at whether you are a worthy candidate to lend a great deal of money to, without actually knowing you, so what they can glean from bank statements and even your social media profiles is important.
We always recommend that those who are looking at purchasing in the near future make sure that there is no unusual activity on their bank statements, with most lenders looking at the last three or even six months bank statements. Things like recurring online betting, joke references from friends when transferring money or putting an expensive holiday on a credit card during this period can work against you.
Likewise, more lenders are looking at social media profiles. Stating that you hate your job and are about to leave, an employment status on linked in that does not match your mortgage application role, or even pictures of you leading an extravagant lifestyle with a flagrant disregard for money could potentially turn a marginal decision into a decline.
Much of this goes back to the fact that the standard of financial education as a whole is very poor, with many would be borrowers never being told how lenders work and assess their suitability for a loan. As a broker part of our job is to educate would be buyers before they apply for a mortgage and to make sure their documentation fits the standards that lenders require so the process is slick and without unpleasant surprises.
Little things like this are worth knowing and can make all the difference in a quick house purchase.
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