First time mortgage application, a bit nervous about recent loan...

Naga_Chilli

Hello all,

My fiance and I have just put an offer down for our first home together after having rented for the last three years. We don't have a joint account together, but have in the past done a large % of our joint day to day spending and bill paying out of my account, which through this and none-too-great money management ended up becoming quite overdrawn at a horrible interest rate.

So we decided to get a loan in October (at a much smaller interest rate) to pay my overdraft off, which my fiance did in her name with her current account provider rather than me taking out the loan myself, as I already had one loan (albeit with only two more months worth of payments to go) and she had no previous credit history at all which we were told may be an issue when applying for other things in the future and felt there was no harm in building up some good history.

So this loan (£2500, which was to pay off £1700 overdraft and keep £800 in savings which remains untouched) was taken out and transferred into my account, which has remained healthy ever since with more careful budgeting and cutbacks and sharing more of the outgoings. My fiance's account has always been positive.

Anyway, like I said we have now just applied for a mortgage of £120,000 (at 70% LTV) and I have read that sometimes lenders will query out of the ordinary deposits into your account, in this case being the sudden influx of £2500 into my account from my fiance, being the other applicant of the mortgage. And basically we're both a little nervous that they won't like the fact that in their eyes it will probably seem that she took out a loan to consolidate my debt and view it quite badly, which whilst I appreciate might seem like the case, it really isn't as simple as that (as I've hopefully explained ).

Although the lender hasn't requested any bank statements from either of us (instead, 1 payslip and latest P60s as well as ID documents), and although they know my fiance has the loan of course, can they see what it was used for and if so are they likely to be wary of it/us or view it badly? Can they obtain bank account history without requesting statements from the applicants themselves? I guess this might be quite an unusual question to answer but any help would be much appreciated.

We both have completely clean credit histories, never any missed or late payments on anything at all, I have one loan which has been completely paid off now and my fiance has only this loan to her name, we always pay all bills well on time, neither of us have any credit cards at all etc, stable address history, hopefully most things are what most lenders would consider pretty good...but the nerves are most definitely kicking in now the application has been submitted!!!

Hope I haven't waffled on too much As I said any help or opinions would be much appreciated...