Mortgage advisor explains why joke bank references could harm getting approved – About Your Online Magazine


A mortgage broker explains why it is better to avoid jokes with your friends on your bank statement (Photo: KAGFinancia / TikTokl)

Transferring money to your friends with a joke in the referral may seem like a little fun, but a mortgage consultant says it could have an impact on your financial future.

People often forget that writing things like ‘silence’ when you are actually just paying for your share of the pizza will appear on your bank statement like this.

And, when it comes to applying for a mortgage, banks analyze all your statements in detail.

Although you may not be planning to buy a home now, most banks need to come back for at least three months, but in some circumstances, they may have to examine older statements.

This is because banks need to check where your money is coming from and make sure that you are not doing anything illegal or paying for something that could affect your ability to pay the mortgage.

A mortgage advisor at KAG Financial posted a video entitled ‘How to avoid embarrassment when applying for a mortgage’ to explain the problem.

She said: ‘Remember the money you transferred to your friend? We see it and so does the creditor.

‘Money for drugs’ is probably not the best thing to use. (This is really harmless compared to what we see).

‘Avoid references to jokes’.

As some people commented and panicked with all the jokes they made, the consultant clarified that it is usually only the last 3-6 months that they look and added: “you only need to worry if it is illegal”.

While it may not necessarily prevent you from getting a mortgage, it can delay things while the bank investigates your payments.

Some commented that it made them think about what they write.

One wrote: ‘I send money to myself. And say things like … Bribe money. Bribery. I never considered that. ‘

Another said: ‘Thank God there are only three [months]! Some of my oldest references were horrible. ‘

And while some of your references may just be silly names or bad words, others have explained that it is better to avoid them too – because you may still have to explain them awkwardly to your mortgage consultant or bank.

One person wrote: ‘I still have a mortgage with very bad mortgages. I was mortified to give my mortgage advisor my bank statements.

So, if you are planning to buy a home soon, it may be best to avoid references to jokes for a few months.

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Contact us at metrolifestyleteam@metro.co.uk.

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Paula Fonseca