My first time morgage application _pale_

holyoak

Hi everyone

I am going to apply for a morgage tommorow for the first time. I am just so worried! My grandparents house has just been put on the market to my surprise and i would love to buy it. The house is up for 95k and i have got cash savings of 10k, so i have got a deposit. My worry is my bank account! I have always gone into my overdraft each month (-£1500) but my pay brings me back out. Will this effect me? Im paying my cash deposit into my bank today. This has all just happend to quick. The morgage payments will not be a problem for me or bills.Its just will my lender relise that? This is my status-Im 28, permanent employment for 6 years, annual income 30k, normally 8k overtime each year, and excellent credit score. I have got 2 loans £1400 each but both will be payed off if the application is succesfull. Will someone put my mind to rest please. I aint slept a wink this week

kingstreet

Depends on the lender. Some may have a problem with overuse of an overdraft, some won't.

Are you buying the property at undervalue to increase your deposit, or is that 10% all you have?

holyoak

Hi there,and thank you for the reply

Im going to my bank first (natwest) so they can see my accounts easyer-and they are the cheapest anyway. Well i belive the house has been placed on the market for 95k for a quick sale, and yes, only got 10k for a deposit

I have only got till friday to get this sorted,as my grandparents want a quick sale. i just wish they had said earlyer

marshmallowkisses

Hi there

Hopefully my story will console you but every lender is different/has own criteria. All depends on affordability/credit history.

I applied for a joint mortgage with my partner with only a 6% deposit on a £150k property value basis, so effectively a 94% LTV.

I have overdraft which I am in every month, though have been paying this off. Between us we have three credit cards, always paid back on time etc. Loan for a car sitting with a balance of around £3k.

As long as you make payments on time and have a good salary, I think you should be fine.

We applied on Friday and were advised we had our application approved yesterday!

Good luck!

holyoak

marshmallowkisses wrote: »

Hi there

Hopefully my story will console you but every lender is different/has own criteria. All depends on affordability/credit history.

I applied for a joint mortgage with my partner with only a 6% deposit on a £150k property value basis, so effectively a 94% LTV.

I have overdraft which I am in every month, though have been paying this off. Between us we have three credit cards, always paid back on time etc. Loan for a car sitting with a balance of around £3k.

As long as you make payments on time and have a good salary, I think you should be fine.

We applied on Friday and were advised we had our application approved yesterday!

Good luck!

You must of heard the sigh of release from there lol. I have been told by loads of people i am worrying to much but you cant help it. My out goings are only around £300 a month,and with the overtime i do i could save 2k a month easy- I just dont :-( . Im always spending on hobbies,out with friends,nice meals ect ect. I just hope my bank will say- Yes will give a morgage but you have to stop all the spending....AND I WILL!!
I am set on this house! and my spendings have and will stop

monty-doggy

I am the same, take home over 2k but always spend it all! I've just been accepted for a mortgage so I guess my frivolous lifestyle ends here

notanewuser

Who has given you the £10k cash deposit?

holyoak

monty-doggy wrote: »

I am the same, take home over 2k but always spend it all! I've just been accepted for a mortgage so I guess my frivolous lifestyle ends here

Hope you dont mind me asking? but how much deposit was you using?joint or single appliction? and how much ltv?

I guess if they can see my pay coming in,and my real outgoings (not ebay,clothes and hobbie spendings) then i should be ok ..surely?

holyoak

notanewuser wrote: »

Who has given you the £10k cash deposit?

I have got a cash saving in my house and my grandparents said they will give me 5k aswell.I wanted to use there 5k with mine for the deposit and keep 5k for doing the house up abit. The loans belong to my sister by the way,so they will be paid off straight away

notanewuser

holyoak wrote: »

I have got a cash saving in my house and my grandparents said they will give me 5k aswell.I wanted to use there 5k with mine for the deposit and keep 5k for doing the house up abit. The loans belong to my sister by the way,so they will be paid off straight away

The mortgage company aren't going to be impressed with that. Why would you live in your overdraft if you had £5k in cash?

NewBe

notanewuser wrote: »

The mortgage company aren't going to be impressed with that. Why would you live in your overdraft if you had £5k in cash?

From recent experience, expect your solicitor to ask for 3/6 months bank statements to verify where the deposit is coming from. They will want to know how you were able to gather 10k in cash, expecially when you have a history of being overdrawn.