Will these factors affect my mortgage application?

coatsey100

My partner and I are about to apply for an first time buyer, HSBC 90% LTV mortgage and are worried about a few factors.

We initially planned to apply end of April to get a few things in order but we’ve found a ‘dream property’, had an offer accepted and need to move faster than anticipated.

Our Details:
- Property Price: £195,000
- Deposit: £19,500
- Annual Joint Income: £62,000
- Debt (CC, OD etc) £0,00
- We both have ‘excellent’ credit scores ( 541 & 487)
- No dependants
- Both been in our current jobs for over 2 years
- We have already got an ‘agreement in principle’ up to a max property value of £200K.
- Currently living with her parents :-(

Concerning factors:
1. £6,000 of our deposit is made up of a gift from my girlfriend’s parents. This has only just been transferred. The rest has been saved over the last 12 months.

2. Over December/Jan, I was in my agreed OD by -£350 (limit is £1500) and my partner -£160 (Limit £200) for approx. 10 days. (Obviously this will appear on our last 3 month’s bank statements)

We are really nervous the 2 factors above could be costly to our application and would love to get your opinion on the situation.

Many thanks!

Dave_Ham

HSBC are fussy, but not that fussy...

On the face of it would expect you to be fine...!

Good luck

If for any reason you are not accepted, just remember HSBC are amongst the most selective lenders (especially at 90%)

Cazza

What Dave Ham said!!

Going over your OD limit is not something lenders are too keen on, but you were within your limit so don't worry.

Deposit - not unusual to have part your savings and part help from parents. They may ask for a letter from the parents confirming it's a gift and not repayable, but other than that it's as good as anything else.

Living with parents - well everyone's got to start somewhere!

And... yes, HSBC are right up there on the super-picky list, so if it doesn't work with them, it really does not mean the end of the road!

mocannhoff

coatsey100 wrote: »

Concerning factors:
1. £6,000 of our deposit is made up of a gift from my girlfriend’s parents. This has only just been transferred. The rest has been saved over the last 12 months.

2. Over December/Jan, I was in my agreed OD by -£350 (limit is £1500) and my partner -£160 (Limit £200) for approx. 10 days. (Obviously this will appear on our last 3 month’s bank statements)

The £6k from your partners parents are just fine, no problem. That you have used your overdraft over Christmas shouldn't be a big worry if serving your mortgage is not a major increase on your monthly outgoings. In other words, if the mortgage payments replace a similar amount of rent you were paying this will be just fine and should go through without problems. If you were not paying rent before, the bank will look into your finances more closely.

star4876

looks like everything is absolutely fine, no reason to be worried there
overdrafts exist to be used if needs be, and you were within your limit so thats not a worry
you dont have any other debt, and a gifted deposit is par for the course these days with the LTV's being so high, so it won't be a problem as long as the paperwork is in place to support the gift with the application