Mortgages and bank statements

toasteytoast

Hello

Just put down a reservation on a new build apartment with my girlfriend through a shared ownership scheme.

We have already spoken to the mortgage broker (that the housing company works with) and he has passed an affordability check with us and offered us a mortgage.

Now we've been asked to provide a bank statement. My girlfriend is ok but i am concerned about my high spending for the passed 3 months and that this will appear on my bank statements.

Our attempt to buy this apartment was a bit of a snap decision, we went to the viewing and fell in love with it. Managed to get the deposit together in a week and now have it reserved. We were really not planning on moving out this year, but this place was a great location and great price.

Anyway for the passed few months, because iv'e not really been expecting to move out, iv'e had quite a bit of high spending on my side. Mainly through birthdays, holidays and festivals and general spending on takeaways, nights out etc etc.

I always pay my outgoings, and after petrol, and mobile phone, car insurance, gym and other small bills i probably have 75% of my income left. Iv'e never missed a payment for a bill, my credit is rated as very good and i only have about £70 to pay off in my bank account.

I'm in overdraft, but iv'e never been outside my agreed overdraft, iv'e already spoken to the broker about the size of my overdraft and where i am. To which he said that would be ok.

How ever would the high spending on my disposable income cause a big problem? Would i be rejected or end up paying higher interest.

Am really worried about this.

Thrugelmir

toasteytoast wrote: »

i probably have 75% of my income left. Iv'e never missed a payment for a bill, my credit is rated as very good and i only have about £70 to pay off in my bank account.

I'm in overdraft, but iv'e never been outside my agreed overdraft,

Is your overdraft £70?

toasteytoast

Thrugelmir wrote: »

Is your overdraft £70?

I meant credit card. My agreed overdraft is £600 (not due to low income, because iv'e refused any increase). Never gone outside my agreed overdraft. Every time i get paid i do come out of overdraft, so it's not like i'm stuck in my overdraft all the time. My bills don't even put me into over draft.

As i said iv'e not really been expecting to purchase a property this quickly. So hence iv'e not really been bothered about, not spending my money.

Thrugelmir

Suggest you clear your overdraft from your savings. Then keep your account in credit.

If you are serious about house purchase. Then your partying days are over (for a while). Property purchase is a life time commitment.

toasteytoast

Thrugelmir wrote: »

Suggest you clear your overdraft from your savings. Then keep your account in credit.

If you are serious about house purchase. Then your partying days are over (for a while). Property purchase is a life time commitment.

Well I'm currently sitting in the positive due to cutting down spending this month already. I have more than enough savings to cover the mortgage deposit, legal fees and clear the overdraft at the same time.

I'm just worried about the previous months spending.

Thrugelmir

toasteytoast wrote: »

I'm just worried about the previous months spending.

Over time that will fade away.

toasteytoast

Thrugelmir wrote: »

Over time that will fade away.

I know that, yes.

How ever as i said, we've put a reservation down on the property. We've passed all the application and affordability checks that come with shared ownership. The broker that we told we had to use, by the housing company, has passed us and offered us a mortgage. He knows about my overdraft and says it's fine.

So the question is, will my previous high spending, not on bills, but just disposable income cause a problem when he comes to process the mortgage application. Will i be rejected?

Thrugelmir

toasteytoast wrote: »

So the question is, will my previous high spending, not on bills, but just disposable income cause a problem when he comes to process the mortgage application. Will i be rejected?

High spending is not an issue in its self.

rosieposey1972

I just wanted to say that we have applied for two mortgages in the last two years, the one before this we only sent in the three bank statements showing my DH's wages and bonuses going in - it was three pages - the last day each month and just showed the transactions for that day. Our Financial advisor told us they are looking for proof of wages going in the account not what you spend day to day. The underwriter will be able to see by your credit report what you have in terms of debt and how reliably you pay for it.

We did exactly the same this time (sent them three months of single statements showing DH's wages going in) and we got our mortgage offer on Friday. DH gave them wage slips, p40 and these bank statements and that was fine - we never thought they wanted the entire three months worth (it would have been a silly amount of paper!)

Good luck with your mortgage