Mortgage Application - Halifax

Trebor2013

For anyone that could kindly help...

Myself and partner are into the process of mortgage application through a mortgage broker dealing with Halifax.

So far we have:

- been given a decision in principal
- been told by mortgage broker the ''application'' has been submitted (20th June)
- received KFI documents
- valuation has been instructed (same day as application submitted) with an approximate ''1 week or so'' expected completion

Documents provided so far are:

- Passport
- Payslips

No further documents have been requested as of today (26th June)

We have also been sent a draft copy of a contract from the solicitors and paid the survey fee (£200.00).

What i am worried about is:

Overdraft/Bank Statements
Myself and partner have been in an overdraft recently, mine was upto £1650.00 and partners only £250.00. Even though a couple of months i was scraping the barrel, generally i would always have £50-£100 surplus as did my partner. Using part of our savings,
we decided to clear the overdrafts on 5th June. Obviously, if requested, our last 3 months will show i have been significantly in my overdraft. I am still well in the positive this month and do no anticipate going back into my overdraft any more.

How much will the above go against us, particularly if the request to see our individual statements?

Additionally, when i recently paid in some inheritance money in my Lloyds TSB account they decided to set up a savings account to protect it. Part of the process included a credit check which was fine (i've since done it on Experian where it showed a score of 525? not sure what that means?) but even though i was in my O/D by £1650.00 the personal banker told me if i needed to i could go upto £2500.00. Does this have any bearing? Obviously i've not needed to go to that high and as mentioned earlier, i am in positive figures in my account.

Bit of a long winded message but just want some help/experience.

Thanks.

amnblog

Sounds like you are just looking for something to worry about.

Be brave you have already been credit scored. If concerned speak to your broker.

Experian_company_representative

A decision in principle is usually made after checking your credit report, so hopefully you'll be fine. If your previous overdraft history was within agreed limits you shouldn't have adverse data on your report. Your report will show how all of your credit products (including overdrafts) have been used over the past six years - the mortgage lender doesn't need to check your bank statements to see this, although I guess they might want to see where your money goes.

James

Trebor2013

Thanks.

I think you're right. Typical brits...we always like to look at as many negatives and worst case scenario's as possible.

Appreciate the positive thinking and will try not to worry.

ExpertAdvice

Hi,

Just wanted to add a bit to the discussion.

Please note that there is currently a bit of backlog with Colleys (surveyors used by Halifax). The backlog might be upto a week but depends on the area the property is in. I submitted an application on 20th for one of my clients and as you mentioned that survey instructed but Colleys haven't called the EA yet to book the survey. Could be end of the week or early next week.

Cheers

MrsHappy85

Hello,

I am a first time buyer and have recently had a mortgage offer from the Halifax, thanks to the help of a broker I found on here.

I was also worried that I would have problems, I have an overdraft that I dip in and out of through out the month, and my husband uses his overdraft now and again. My overdraft is not a small limit either. We also both have car loans. We do manage our credit agreements well and never go over limits or miss/have late payments.

The mortgage broker we used assured me that once the card payment had been taken for the valuation, we could be more or less certain that the Halifax would lend us the money we require (subject to the valuation going ok).

We paid for the valuation on the monday, the valuation was arranged for the friday morning and we had our offer by lunch time friday afternoon! So far so good, we are just waiting on the solicitors to do their checks now and hoping all goes ok.

Based on what you said, I cant see their being a problem. As I understand it, the use of an overdraft does not automatically go against you, indeed, if an overdraft is well managed, it can be a plus point.

We are putting down 10% deposit.

Goodluck and try not to worry so much. Fingers crossed for you! x

Goldiegirl

The Halifax wouldn't have instructed the valuer unless you had passed their credit scoring system, so it's so far so good.

But it's not a done deal until you have the offer - even if you pass all the checks, the property has to be acceptable too!

But I would say everything is proceeding nicely, so there's no need for worry.