Banks Statements & Reserve Fee

gilly33

I've been asked to show 3 months bank statement and I've just noticed I've been charged for going into my reserve in April will this affect my mortgage application?

Thrugelmir

By reserve, I assume it to be an overdraft of some kind.

Lenders will detect this when they credit check you. So will see the past 84 months activity on the account.

gilly33

I have an agreed overdraft and reserve fee if I go into my reserve they charge me £22. It's not a default because its agreed. For a couple of months it shows me going into my overdraft and paying it off at the ened of the moment, but in this last month I've been more careful not to do so however I just noticed that I dipped into my reserve and it shows charges £22. I just dont want it to affect my chances but there's not a lot I can do now.

Caladan

Is this a formal agreed overdraft facility that charges every-time you use it or is it a reserve on TOP of your formal overdraft facility?

If it's the former, I'd say no problem, if it's the latter, I'd still say probably no problem but you might want to explain it.

I can't talk for all lenders, but certainly where I work people using their formal overdrafts is fine as long as their wages are enough to being them back into credit once a month.

gilly33

I have an agreed overdraft facility of £1,000 and then I also have an agreed reserve for £1,000. I didn't use all of it just dipped in buy paid it back within 5 days which is the time you have to do so.

Thrugelmir

Usage of credit facilities can be damaging to a credit profile as it raises questions of affordability and money management.

Defaults are a couple of levels up on the scale.

gilly33

Just so frustrating applying for a mortgage these days. If one of the 3 months showed me not touching my overdraft would that make a difference?

Thrugelmir

gilly33 wrote: »

Just so frustrating applying for a mortgage these days. If one of the 3 months showed me not touching my overdraft would that make a difference?

All credit usage is disclosed by the credit check. The viewing of bank statements is for a totally different purpose.

Get used to to the tougher criteria. This is the new norm. A return to the days when banks were run by bankers, not market traders.

Goldiegirl

Thrugelmir wrote: »

All credit usage is disclosed by the credit check. The viewing of bank statements is for a totally different purpose.

Get used to to the tougher criteria. This is the new norm. A return to the days when banks were run by bankers, not market traders.

Or greengrocers in the case of Andy Hornby

Thrugelmir

Goldiegirl wrote: »

Or greengrocers in the case of Andy Hornby

Be a programme in a few years "Where are they now"......

Caladan

gilly33 wrote: »

Just so frustrating applying for a mortgage these days. If one of the 3 months showed me not touching my overdraft would that make a difference?

To be honest with you I wouldn't be that worried. No one on this forum can give you a definite answer, but having dealt with hundreds of Mortgage applications at one point or another in the process (usually I'll deal with the initial decision in principle and then pass it to a qualified adviser) what you've told me doesn't really raise alarm bells.