Mortgage and overdraft advice

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I am keen for any info anyone can give.....
Please help!

My partner and i are looking to buy our first home. It was a very unexpected decision and something we had not planned to do quite just yet however we saw a house and looked into it and are both now keen to buy it. 1 due to the location and 2 due to the price and being affordable to us as first time buyers.
We looked into a mortgage and it was agreed in principal however we have now been sent the paper work through and it is asking us for to send through wage slips which is no problem and bank statments for the last 3 months.
THe banks statements are the concern not for my partner but for me.... as owing to it being christmas and other things i have been 1000 into an agreed overdraft for the past three months. So my account has always been minus - apart from pay day and just after!
In hindsight i should of took out a loan but i wasnt expecting to buy a house so used my over draft for things. I have paid my over draft off but just concerned it doesnt look good.
Do you think this will cause our mortgage application to be declined??

Thanks in advance

Having now cleared my over draft i know if asked for the statements in three months time they would now be fine. My worry is how they look like for the last three months and this will cause the mortgage to be declined!

GemBlueTopaz1984

Hi,

i'm not expert at this and can only say what my experience was but I got a mortgage in oct 09 which was supposed to be a strict lending time.
Both me and my partner used our overdrafts to the max each month me about £500 and him £750 (paid off shortly after due to £1/day charges introduced) but we were granted a mortgage despite our statements showing this. Worst case is, if they say its an issue you show that its paid off.

gem

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Thanks for your help... i have a deposit some money in another account. I will transfer some of this to clear my over draft during this week and send off my statements at the end of the week once this has been done.

My worry is that someone will look at my statements and see that i have been in the minus for the last three months and it just doesnt look good!

So although i have not got the debt now.... i did have it and my account doesnt look good.

Its asked for good account conduct and i am not sure being in my overdraft is this!!

Thanks for your help

GemBlueTopaz1984

Hi,

I think good account conduct is generally not going over your agreed limit or bouncing direct debits and such. I remember the stress well. Waiting for the answer, I think I rang Natwest everyday for an update, got the joy of being told it had passed the underwritting fine and the survey being organised to the next day being told it hadn't passed underwritting yet and they could explain why i had been told it had. all got sorted though, had to speak direct with the underwritter and found out what was holding it up. Turned out they didn't have enough pay slips for my partner (despite me giving him all the paper work required to take inbranch he still managed to get it wrong, men!!), quick trip to my local branch with the extra paperwork and it was approved that day subject to survey.

Hope your process will go smoother, doesn't mean you won't worried every step of the way, got to say it was totally worth it when we got the keys.

Gem

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Thinking on the negative side.... if it does get declined is that it or are there options where you can make changes or pay things it off for it to be accepted....

i have no debts other than being over drawn for the past three months by about 1000. I have a good job and my partners the same minus the overdraft problem.

Once you have sent all the paper work off are you contacted by the underwriter at any point?

Thanks for your reply

GemBlueTopaz1984

Hi,

i'm not sure if you get it explained as to why you are declined, are you applying direct or through a broker. I applied direct as it was a better rate to go direct but I had to deal with a different call center worker each time i called. I don't think it is common to speak to the underwritter, usually you just get a decline or told it has been passed to the survey department, which means you get the mortgage aslong as everything is ok with the house ie, not falling down and worth the selling price. How long have you been waiting for an answer. it took me about 2 1/2 weeks from application to full mortgage offer. Could you ring them tomorrow and ask what stage it is at? If it is a decline I would ring and ask to speak to the underwritter to see if you can get an answer and if the overdrafts are an issue you can tell them you can send them proof of it being paid and ask them to reconsider based on that.

gem

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Thanks i have got it paid off now... just worried about how my last three months statements look due to being in it. We have just applied but my partner is going to ring today and ask... it is a very stressful time but i think something i have brought on my self by using my over draft

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How long does it take to hear about mortgage acceptance?