FTB Bank Statements?

simon1983_2

Hi,

What are banks looking for when they receive your 3 months worth of bank statements?

I'm a graduate and still live within my low interest overdraft whilst i pay off credit cards which incur a much higher rate of interest.

As such i'm still well within 2 planned overdrafts. Will this affect me adversely? My credit check was clean and passed and I always pay my direct debits and repayments on time but I'm a little worried.

If i use our deposit to pay off these overdrafts it leaves us short on the deposit front.

Thanks

Simon

TMoose

simon1983 wrote: »

If i use our deposit to pay off these overdrafts it leaves us short on the deposit front.

I think this is kind of the point... it thus appears that you have "borrowed" your deposit - which is considered not-good in the present climate.

In the main though, I believe that they are looking for evidence of good financial management, as well as any indicators of gambling/debts you've not disclosed.

Moose

originalmiscellany

a) You have an income in line with what you have said on the mortgage application forms
b) No debts you've not disclosed
c) No gambling or random debts that could get in the way of paying your mortgage.

simon1983_2

originalmiscellany wrote: »

a) You have an income in line with what you have said on the mortgage application forms
b) No debts you've not disclosed
c) No gambling or random debts that could get in the way of paying your mortgage.

Yeah income is definitely in line, no unallocated debts and no gambling beyond a bit of a flutter on the national lottery. Certainly nothing untoward.

Thrugelmir

Payoff your overdrafts and credit cards. This suggests that you are living on the edge. Lenders are increasingly looking for responsibilty in handling personal finances.

simon1983_2

Thrugelmir wrote: »

Payoff your overdrafts and credit cards. This suggests that you are living on the edge. Lenders are increasingly looking for responsibilty in handling personal finances.

When i graduated i had a large amount of credit card debits, i'm down to a couple of hundred each across 3 cards. I could pay them off but that would result in me bouncing off my overdraft limit. Which is also ill-advised.

So, do i ..

a) take the hit and pay off my credit cards
b) use my deposit to pay off my overdrafts
c) submit my details accordingly as they stand? even if i paid everything off they would still show up in my 3 months worth of statements.

Typhoon2000

Being in you overdraft constantly is never a good sign as it suggests you can make ends meet. I know it makes sense to keep them and pay off your credit cards first, but it might be hard to explain all this when applying for a mortgage.