Help - existing debts and obtaining a mortgage

LOST

I am applying for a £99k mortgage and have £4k on credit cards where I always pay on time.

I have a bank account where the Natwest have charged me 3 * £38 for unpaid direct debits for last month (paypal payments where they go to your bank before taking from credit card). This is the only time ever in the 10 years of opening the account that I have had charges put on and I have sent them a comp[laints letter on theri procedures and unfair excessive charges.


Taking all this into account, will I have trouble getting a mortgage?

CB1979_2

well what's your salary?

that plays quite a big part in it.

LOST

salary is £25k - can anyone shed any light on this?

rio

Depends whether your mortgage broker asks to see bank statements or just proof of income. Returned items normally indicate pressure on the account so even though you have taken this up with the bank you may have to ask them to provide a letter detailing the circumstances of the unpaid items. When I worked in the bank we used to do this for customers, but that was years ago before everything went to service centres, so I have no idea whether they would still do it or not. I would contact your potential lender and find out what sort of information they expect you to bring in. If they want to see statements then you could explain the circumstances, but most people in the financial industry have heard sob stories and lies many times over, and it does harden their attitude. This is not your case, but expect some tough questioning and an unforgiving responce.

Bargain_Rzl

Although I am debt-free and was only applying for a small mortgage, I prepared a one-page statement of affairs before my broker appointment just to cover all bases. Perhaps it would be worth doing this to prove affordability.