Mortgage Underwriting Query

Naf20

Hello

I have a question and would appreciate any help.

We have been offered an approval in principle from Standard Life. I have sent all the documents they require including 3 months bank statements. We are just waiting for the formal mortgage offer and my solicitor is ready to exchange contracts.

Unfortunately my partners bank statements show an overdrawn balance of approx £500.00. This foolishly happened because he has been transferring money to our joint savings account and didn't realise he had gone overdrawn. I have sent a written explanation of this to Standard Life and shown proof that the money is in our joint account.

Would an underwriter look at the overdraft balance and immediately refuse our application? Or would they look at the wider picture? I am getting increasingly worried. We are good earners and borrowing 1.5 times our joint income but I know most lenders look at the affordibility criteria these days. Also what worries me more is that my partner is self employed.

Has anyone been in this situation or have any advice? Is my mortgage application doomed for failure?

minimike2

If its within an agreed limit then they wont look twice at it. Its nowt to worry about. if its taken it over the limit they might not like it.

inca_2

Saying they wouldn't look twice at it if it is within an agreed limit isn't strictly true, some underwriters will look at someone who is consistently in their overdraft as living beyond their means whether it is within the agreed limit or not, (not saying this is the case with the OP however). In your situation though to be honest you can show where the money is and that it's still 'yours' just in a different account. It's not like it's been run into the ground because of huge outgoings presumably so although obviously I can't say for definite I wouldn't worry too much, as long as overall affordability is there I'm sure you'll be fine.

minimike2

I cant name a time in seven years where Ive had a decline based on someone being £500 overdrawn...

inca_2

It wasn't the amount that I was referring to, I said to OP in their case that I'm sure they would be fine,

If its within an agreed limit then they wont look twice at it.

That was the bit I was referring to as I've seen a fair few cases questioned further and even declined because of being in their overdraft even within the limits not saying I've always agreed with it but it's happened.

Naf20

Thanks for the replies......you've both put my mind at rest...please don't argue now!!