Mortgage advisor tells you the one thing not to do when sending money to friends

When paying mates back, some of us opt to make the transaction a little bit more light-hearted as money is often a serious business, making the reference but now we are being warned not to.

A mortgage and protections specialist from KAG Financial shared a TikTok of a woman shaking her head at the closed caption stating the transaction was “money for drugs.”

The video’s caption reads “How to avoid embarrassment when applying for a mortgage... Remember the money you transferred your pal? We see it & so does the lender.

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“’ Money for drugs’ is probably not the best thing to use... This is tame compared to what we see. Avoid joke references.”

They may delay proceedings needed to get a mortgage by prompting additional questions from lenders and other problems therefore they advise against adding a little bit of whimsy when shooting over your pal the 20 quid you owe them for that round of drinks.

However, other brokers pointed out that the most important thing was that the payments were legitimate.

Daniel Bailey from Middleton Finance told The Financial Times “the reality is that they are looking for whether your payslips are real or not.

“They want to know whether the money is really coming in, and they check that carefully. I’ve had clients with loans from friends and family, and they scrutinise them for things like that, but I’ve never seen anyone scrutinised for bad language.

Some people wondered how far back with their bank statements lenders looked at after worried it being “too late” for them.

“For those of you who asked how far back they check back - most of the time it’s three months, your application is only affected if it’s something illegal.”