Mortgage advise (fear of being declined)

xlollx

Offer on a house has been accepted. We are first time buyers who have are aiming for £15% deposit with £450 mortgage repayments (£200 cheaper than rent!)

Myself and partner have a Decision in Principle from Halifax who in theory have said they will lend us £96000 more than we actually need. We were at first declined by Nationwide who said the problem wasn't with adverse credit but just rating.

I've heard that Halifax aren't great for going ahead with full application of mortgage. I have checked my credit rating through experian and I am good. No issues. The problem will lie with my partner (who hasn't checked his yet!) He has two bank accounts both in overdrafts (less than £2000) and he regularly gets sent letters saying he has gone over overdraft agreements or direct debits have bounced (usually at the end of the month but once he has been paid from work these get paid). To be fair, he is in the process and has made arrangements with banks to reduce his overdraft and has done considerably over the last couple of years. He has also changed his name recently through depol and has yet to change his name with everyone.

Is this going to dramatically effect our chances of the mortgage being approved? My main concern is that they will ask to see bank statements and will see that he is in his overdraft.

Any help, advise, would be welcomed.:)

ACG

Going over your overdraft is seen as effectively living beyond your means - if this is happening often then it can cause problems.

I would imagine this is possible, but i would suggest you speak to a broker as this wont fit with everyone (as you have experienced).

Sillysausageuk

I think his priority is also to get his name the same everywhere, and registered on the electoral roll. As your score goes down if your name/address everywhere doesn't match. Late payments will effect things. Would be worth looking at his score and consider applying for it solo? x

Thrugelmir

xlollx wrote: »

My main concern is that they will ask to see bank statements and will see that he is in his overdraft.

The overdraft will be visible on the report supplied by the credit agency. Also the last 6 years history will be visible too.

Regular use of an overdraft will be viewed detrimentally by lenders. So as a priority you need to get this addressed.

xlollx

We both checked our credit on experion.

I was a good with a score of 911, and partner was very poor.

Will a mortgage underwriter look at this and balance it out? Our monthly payments will be £200 cheaper than they are now. Or will they point blank refused based on one of us being crap with money.

I'm thinking it might be better to make the mortgage application by myself. But this obviously has risks in itself.

Building_Surveyor

whether your mortgage will be cheaper than the rent you are paying is irrelevant to the lender.

Chris72

Building_Surveyor wrote: »

whether your mortgage will be cheaper than the rent you are paying is irrelevant to the lender.

Is that with a particular lender or generally across the board ?

Building_Surveyor

Think its general tbf. They definately dont ask how much rent your paying as far as im aware - well didnt with mine, but i suppose they will be able to see how much money you have going out on your bank statements. If you've kept your head above water paying rent and the mortgage is cheaper then even for just your own piece of mind its a good indicator, but i doubt they would even look into that. you either meet the affordability or you don't. I don't think the fact that the mortgage than rent would be cheaper would sway it

Thrugelmir

xlollx wrote: »

Our monthly payments will be £200 cheaper than they are now.

With house ownership comes all the maintenance costs. So not comparable.

xlollx

A bit of an update:

Saw a broker, he didn't seem particularly concerned about background of credit so we pushed ahead with a joint application. It was accepted in principe and then accepted at when submitted online and instructions were given immediately for a survey to be completed. The fee has been taken and date has been arranged. We were also instructed to provide 1 recent payslip and nothing else.

I'm guessing this all sounds quite positive. Fingers crossed.

fawny

Fingers crossed for you:D