When banks are assessing a loan application they ask for copies of your bank statements, and they are going to be looking at a number of things including if you have good or poor account conduct.
They will have a close look at the bank statements looking at your account conduct, checking what payments you have going out of your account and also checking your income going into your account.
Until recently the bank statements were the only way that lenders could check for poor account conduct.
But now as well as being able to check your account conduct on your bank statements they are also able to get a lot more information on your credit report.
A lot of utility companies as well as banks and finance companies are now providing information to the credit agencies on how promptly people pay their bills or loan repayments. This is in addition to reporting on defaults and collections which are the way people are identified as having bad credit.
Your Account Conduct Should Be Checked
Many of the typical mortgage brokers (or mortgage advisers) will ask for your bank statements and may have a quick look at them, but often they do not analyse them in the same way that a bank might.
They should check your bank statements and look at the transactions and account conduct as this is what the lenders do. If your broker was to review your bank statements in detail then they would identify any things that the lenders might see as a potential issue, and then can answer the questions before they are even asked. It might even help them know which bank or non-bank lender to apply with.
We know that banks want to see this information and in a number of cases home loans are being declined solely due to poor account conduct where that might not have happened if a good assessment was done by the broker.
As a non bank broker I know how important things like account conduct are, and so bank statements are reviewed to see if there are any issues that might raise a red flag to a lender. Often those “red flags” are easily explained, and it’s important to explain them at the outset to ensure that the lender views the loan application in a positive light.
These are the little extra things that a specialist non bank broker does, and that’s why you will have better success by using a broker like me.
