A mortgage lender that doesn't require bank statements?

warholian

I have a great credit report, no missed payments, on the electoral register. I have no debt save for a £1500 overdraft and a salary of £37,000. I have a £50,000 deposit, from my parents as a gift (am not expected to pay it back). I applied - and got -a mortgage of £85,000 but I changed my mind about the property as I had been given inaccurate information. I have since found that there are very few cheap properties at that price, and none of them anywhere near as nice. As the mortgage advisor had worked out that I could borrow over £150,000 (I forget how much, it was probably higher), I decided to apply for a higher mortgage (borrowing £125,000, £47500 deposit - as I want a couple of thousand to do it up). Mortgage advisor wasn't worried as my affordability is good. Then it's rejected. She rings up the underwriter- they don't know why the system rejected it either. My mortgage advisor decides to contest the decsion and asks me to give in my bank statements (which they didn't need/ask for in my first successful application). I hestitate, worried about the overdraft, but my mortgage advisor has told me again, and again, that they don't care about overdrafts - only loans and credit cards - I therefore hand in my statements.

My application is rejected. Reasons given are vague and my mortgage advisor is baffled and upset - as am I. One reason is that I'm a first time buyer. No kidding - never hid that. Second reason is that my deposit is a gift - so no evidence of saving. (Why had that not been raised in my first application then?) Final reason is that I go into my overdraft - that's kind of what it's there for - and they aren't supposed to count overdrafts!

I'm upset but my main concern is that I find a mortgage lender who doesn't require bank statements. My mortgage lender didn't until the system rejected it (which they think was simply because I went from a small mortgage request to a much bigger one - it confused their system) so there must be others.

This is really rather urgent as I don't want to lose the property i have made an offer on. Happy to provide all other paperwork - P60, payslips, passport - but I am too worried about the impact of having an overdraft to want to risk applying to a mortgage lender who requires bank statements. I should add that I have no big outgoings/standing orders. It's just that I enjoy my salary - there is no reason on earth why I wouldn't be able to make the mortgage payments - they are much less than the monthly rental of a place I lived in when I earnt a lot less. Please help!

Senior_Paper_Monitor

!!!!!! !!!

A mortgage adviser processed your application without seeing a bank statement ??

The circumstances (and reasons for the rejection) make no sense (to me) at all as described.

Inability to save certainly can be an issue but should not be a problem properly handled with an appropriate lender.

Lenders do "count overdrafts" but occasional use of a £1,500 overdraft should not be a showstopper.

Thrugelmir

I should add that I have no big outgoings/standing orders. It's just that I enjoy my salary

You don't though. Your lifestyle requires use of an overdraft facility.

People fall into catergories when it comes to money management. Underwriters are expert are identifying who falls into which.

clairecymru

Nationwide didn't ask to see my bank statements and I was £2000 overdrawn and occasionally went over my overdraft.

catota

Hi. My partner and I have just been accepted for a mortgage from Abbey (Santander). We have a joint salary of approx £50k, I live in my overdraft (£1000)- my partner occasionly dips into his. We have no savings ( I did have but circumstances meant I had to use them) and like you our deposit was gifted to us by parents. We had to provide bank statements so they were well aware of our circumstances. They may be worth trying but there are so many factors banks weigh up that it's very hard to second guess them. Hope this helps!

catota

ps. we are also first time buyers -mortgage applied for £155k and only 10% deposit.

warholian

Thanks - good to know about Santander - as it sounds like they may accept someone with an overdraft. To the person who said that my lifestyle requires an overdraft...not really true! I got an overdraft due to a one-off situation that required funds, and was out of my control. I have never needed to borrow money since. I have no debts, loans, no store cards or credit cards. I could pay off half of it in the next week, and the other half in the next five weeks, without suffering. It is simply that my lender told me multiple times that overdrafts weren't a factor they took into consideration...just loans, etc. I therefore kept my overdraft rather than paid it off. Thing is, even if I pay it off in 5 weeks, my statements will still show it for many months after!

Therefore, please do continue to let me know of any mortgage lenders who do not require bank statements/accept overdrafts. I am not being irresponsible - take away rent and I have just £55 in committed outgoings (gym membership) and over £2200 net coming in each month. I swear I can afford the mortgage repayments which were just £600 per month (fixed for 5 years)!

Thrugelmir

[QUOTE=warholian;47752645_To_the_person_who_said_that_my_lifestyle_requires_an_overdraft...not_really_true![/QUOTE]

Then you've nothing to hide if asked to provide bank statements.

warholian

Just to repeat myself Thrugelmir- I have an overdraft.... This is why I would prefer a mortgage lender who does not need bank statements. It turns out (despite claiming otherwise) they DO mind if you use your overdraft.

They weren't honest about this, so once bitten, twice shy - I'd like to keep my bank statements to myself.

No need to reply Thrugelmir, if you have no suggestions - antagonistic responses aren't welcome. If you read my initial post you can see I've been completely transparent with the lender - it is they who hid information from me - and I might add that my mortgage lender acknowledges this and has apologised profusely.

Helpful responses only please!

SusieWoozy_2

Hiya,

I've just had my mortgage offer from halifax, they didn't want to see bank statements. They only wanted to see one month payslip initially but then changed their mind to 3 months because i have a car allowance as part of my job x

maurice28

Hi,

Just to double check, and forgive me if this is a daft question, but did you disclose that you had a £1,500 overdraft on your original application?