RBS mortage application accepted- overdraft on my statements

Donald879

Hi

I have had my mortgage application with RBS accepted and passed the credit check (the search shows on equifax but not experian).

as part of the application i explained the large number and high value of my personel debt and how this would be paid down on completion of the sale of my house. they were happy with this.

I am porting the mortgage and paying an ERC as the new rate i can get is better. this means even though the mortgage balance will be higher the repayments will be lowere than they are now. I have a 30% deposit.

My worry is this. they have asked for 3 months bank statements to see how i manage my current account. I have an agreed overdraft of £2500.00 with my current account. Each month I get close to the limit due to paying off all the cards etcetera but never go over it. so my bank statemnts show an interest charge for the overdarft (normally about 10.00 per month) but never any charges for going over the agreed limit. Will this be ok or will the RBS not like the fact i use my overdraft and pull out? they know the amount of debt i am paying each month from the application and that this will stop once i move.

thoughts please?

whysitallsocomplicated

Hi
I am in exactly the same position as you though have completed the process to the point of recieving my written mortgage offer after the valuation.

We too are porting and increassing our mortgage with RBS and the same is true in that the monthly payment is lower for teh higher balance. we are going to save in the next 6 months even after considering the ERC

They were happy with the amount of debt I was paying off and that what was left to pay each month still came within their affordability calculations.

i too have a £2.5K OD limit which we use up nearly all of it each month though never go over. we were worried as well but they seemed happy as we always stayed within our limit.

I did do a covering letter with all my documents explaining the situation and included some documnets they hadnt asked for such as my wifes sole bank account details where the Tax credits and child beinfit was paid along with the award letters for these benifits. I also included 3 months statements for another joint account where we keep our rainy day money.

I included a copy of my credit file as well although I know they had this but thought it demonstarted that we were on top of and aware of all our credit.

When the underwriter rang to say she was going through everything she told me it was great to have got all the documnets as it made the jpob so much easier and meant they didnt need to ask for anything else.

4 days after sending in the documnets the underwriting was done and the survey booked. 5 days latter I had my written offer.

I did ring a lot and talk to people there and found them all very informative and easy to deal with.

hope this helps

Peter_L

I was in a near identical situation including porting my mortgage but as I banked with them anyway (Intelligent Finance) they could see the history of all credits and debits and didn't even need any statements. I held my previous mortgage with them for 9 years and never missed a payment and never went over my £4k agreed overdraft but was using my o/d regularly (i.e. every month) and everything went through ok. I was borrowing 75% and we have a joint account.