FTB Mortgages help

Gorillabiscuits

Hi guys,

Long time lurker here but after some advice on mortgages. Me and my girlfriend are looking to buy our first home. We've had a AIP from Halifax for up to £126,000.

We've had an offer accepted on a house for £125,000. We've been gifted a deposit of £20,000 so are looking to lend £105,000.

Just starting to worry now as I've had a £1,000 overdraft that I've constantly been using for the last 8 months. I'm looking to pay £700/800 off this month and the reminder next month. Never had any other debt and have a good credit rating. Should the overdraft effect my application?

Also, we've been having a look around and found the best fixed rate with HSBC for 4.19%. Reading the forum, I've noticed that people tend to have a lot of trouble with them. Should we look around further or apply for HSBC?

Thanks

sammyjammy

I'm sure the experts will advise you properly but I'm lead ot understand that it looks as if you have trouble managing your money, this along with the fact you've not personally saved a penny towards your deposit ring alarm bells with me.

You might want to change the title of your thread, its very strange.

Gorillabiscuits

sammyjammy wrote: »

I'm sure the experts will advise you properly but I'm lead ot understand that it looks as if you have trouble managing your money, this along with the fact you've not personally saved a penny towards your deposit ring alarm bells with me.

You might want to change the title of your thread, its very strange.

It was only used due to coming off temping to starting a permanent job(within the same company). Only now have I been in a position to pay it off.

Apologies for the title, was just trying to make light of the fact the same questions have probably been asked quite a number of times.

vectistim

Gorillabiscuits wrote: »

Apologies for the title, was just trying to make light of the fact the same questions have probably been asked quite a number of times.

OK, personally I was expecting some report about the number of FTBs in some period or other.

harvey115

Halifax is one of the lenient lender in the 'high street' market, so you may have a good chance with them.

Using overdraft is not usually a good sign of using your finances properly. However a credit card debt is looked a little positively on comparison, this is because the CC debt is a little connected on planned borrowing rather then unexpected shortfalls with overdraft situation. This is the way lenders see it.

HSBC is one of the strictest lender in the market (but has one of the best rates). I would think HSBC would refuse your case due to the overdraft issue. So no point in going to them.

Although Halifax rates are not market leading, given your situation and if it has been disclosed at the time of application you have a chance of being accepted subject to no other issues with your credit history.

When its a borderline case with other issues with your credit, these things (your overdraft usage etc.) are used further to decide on lending or not.

I am no Financial Advisor, so please do not count on my info. Just how I think it is...

Wh05apk

The overdraft should not be an issue.

Halifax rates are lousy, and are not overly fussy who they lend to! HSBC rates are good but tend to decline more than they accept! You can probably find a lender in the middle who will accept you and still offer much better rates than Halifax.

Just one more concern, who is the "gifted" deposit from? is it really a gift or a loan?

.................and chnage the thread title if you want some response!

Gorillabiscuits

Thanks very much for your help. I've tried changing the title but it won't let me. Sorry about that! Oh and the deposit is from grandparents. Like I said, we have no other debt other than my Overdraft usage.

DVardysShadow

Gorillabiscuits wrote: »

I've tried changing the title but it won't let me. Sorry about that!

Edit -> Go Advanced

Gorillabiscuits

Thank you!

jezebel

Gorillabiscuits wrote: »

Hi guys,

Also, we've been having a look around and found the best fixed rate with HSBC for 4.19%. Reading the forum, I've noticed that people tend to have a lot of trouble with them. Should we look around further or apply for HSBC?

Thanks

HSBC proudly promote the fact that they make an offer to 4 out of 5 First Time Buyers - when I saw this, I wondered if they would advertise saying - we reject 20% of applicants...that being said, there is no harm in checking if they would lend to you.