Mortgages & Bank Statements

chrissyl4445

Hi, this is my first post so hope it's in the right place!

I just wanted some advice on the mortgage process. We're 1st time buyers and are trying to join the Homebuy Direct scheme or something similar (I know a lot of people on here don't agree with them but that's not what I'm posting about).

We have been told by the mortgage adviser dealing with Homebuy that we have been credit scored by Halifax and can have a mortgage of £127k. What I'm worried about is how crucial are your bank statements in the mortgage decision once you put a full application in?

The reason being, my fiance is a soldier and for the past 2 months since he was sent on overseas exercise the army have really messed up his wages, paying him a lot less than usual which has caused him to have an unauthorised overdraft 2 months in row as he had no way of checking his balance or wages while out there. Now I'm really worried that when we declare our bank statements they are going to think he can't manage his finances and turn us down!! It's sods law that it's happened right at this crucial time but that's the way of the world I guess!

We both have high credit scores (me 999, partner 985) even though he hasn't had much credit before. The only bad things on our credit records are late payments on his previous mobile contract 4yrs ago (due to a serious dispute which he is trying to put a notice of correction on for) and a few late catalogue payments on my side 3-4yrs ago. We don't have any loans/finance agreements or credit cards anymore. I have banked with the Halifax all my life and they are always trying to put my overdraft up or offer me loans so I presume they think I'm a good customer

So really what I'm asking (in a very long winded way!) is do you think his bank statements alone would be enough for Halifax to turn us down for the mortgage??
Sorry for the long post, I'm just really worried that this one case of bad timing is going to spoil things for us and want to be prepared!!

Dan_1976

Have they asked for them?

I imagine that if you put what happened across in the correct way you will be fine. It may be worth talking to the forces HR and see if they can confirm the !!!! up!

chrissyl4445

No they haven't asked, we haven't put the full application in yet, just waiting on the mortgage adviser.

We had to give bank statements for the homebuy application but luckily his last one Oct-Dec 08 is fine (he gets 3 monthly statements) its just that by the time we put the full mortgage application in, that one will be out of date and his Jan-Feb one will show the unauthorised o/draft etc.

No chance with the HR people, they are useless, the army are never wrong of course They say it's his fault as they did inform him they would be taking previous overpayments from his wage. They have conveniently forgotten that as he moved barracks and they were sending his payslips to the wrong place for months he didnt get this information in the first place!!

19jeni89

Hi there

This is my first post, after reading yours I hope you have sorted the situation you were in??? My partner and me are also trying to get a Homebuy Direct Grant at the moment (and buying a Barratt Home funnily enough!!!) and I wondered how far yours is into the process and any tips/guidance how long it takes!!

Thanks

Jeni

happybroker

Speak to your mortgage adviser and ask for the agreement in principle that should have been done. This should tell you what you need to submit with the application.

If it does ask for bank statements have them referred and see if it causes an issue so that you aren't left in the lurch at the last minute

chrissyl4445

Hi Jeni,

Good luck with your Homebuy application I hope it all goes through for you.

Well ours went through without a problem in the end and we are hoping to complete in a couple of days!!

I must say it has been a long and confusing/frustrating process at times, I think because we were one of the first to apply in our area no one seemed 100% sure what they were doing if I'm honest, so the whole thing has taken 3 months from reserving a property to getting approval on the scheme & a mortgage offer.

I think it will be quicker now though as the scheme wasn't properly up & running until a few weeks ago. The only reason we are still waiting for completion is Barratts have incorrectly filled in the form with our equity amount 3 times now so Halifax wont release the money until its right!!

My best advice really is to keep the pressure on and keep chasing everyone - the solicitor, Barratts & your mortgage adviser - to keep things moving as I know ours would have dragged on even longer otherwise.

Good luck!!

Thanks everyone else for the responses.

Cx

19jeni89

Hiya, thats fabulous news... have you completed now??? Thanks for the guidance. we are also the first people on our development with this scheme so it seems not many people know what happens.

To date weare just over 6 weeks from when we reserved the property we have sent everything off and then there was a problem with a copy of our savings as it didnt have the address on this has now been rectified but our mortgage advisers have heard nothing from homebuy despite chasing up. how long did the grant take from when you first applied.

I am so happy it went smoothly for you, fingers crossed will happen for us too... keep me updated!!!

Thanks

Jeni

19jeni89

thanks happy broker for advice also - have you been through this process as well?