Bank Charge and Mortgage Application

Giraffe01

We have received a decision in principle for a mortgage through our broker, affordability etc is all coming out ok. We have sold our house and are yet to find somewhere to buy but when we do I have a few concerns about the full mortgage application and having to supply three month's worth of bank statements...

My husband pays the mortgage from his current account and I make a payment via standing order from my current account for my share. Last month, however, I dropped down to working part time so my share of the mortgage was meant to be reduced in accordance but I forgot to adjust the payment amount so my orginal S/O came out and as a result I didn't have enough money in my account to pay my Barclaycard direct debit which was coming out the next day. I realised my mistake quickly and transferred money from savings on the same day to cover it but it was too late and HSBC returned the direct debit and I got charged. (Barclaycard also charged me even though I paid them with another card on the same day so my payment to them was never late). I just want to know if having a recent bank charge showing on my statement will scupper a full mortgage application? I do have an overdraft which I use every month although my salary takes me out of it every month too. My husband has a larger overdraft which he is never out of but we have stated that both of these will be paid off as a condition of the mortgage anyway.

The only other fly in the ointment is a few (non consecutive) late payments on a credit account from a high street store that has been messing me around. They have been late applying refunds on my account so I have waited for these to appear before settling the monthly invoice so I know how much I need to pay but it ends up looking like I have been late paying. They are super quick about getting information on to my Equifax file (this account isn't showing up on Experian and Call Credit) so even though the account is now settled and I have requested it be closed, it is still showing as in arrears for October.

We have plenty of other credit accounts which are all satisfactory and have never been paid late and they will also be paid off as a condition of the mortgage which is an entirely different thread.

We have a 20% deposit but I just want to know if the issues above will cause us massive problems when it comes to making a full application.

Thanks in advance

ACG

Youve sold your house, have a deposit and are living in overdrafts and having payments bounce.

Doesnt look like you manage your money very well to potential lenders. At 80% LTV it shouldnt be a major problem but i would take a closer look at my finances if i were you to make sure your not getting unnecessary charges etc.

Giraffe01

We haven't completed on our house sale yet so don't yet have the deposit available to pay off the debts and overdrafts. The debts and overdrafts accumulated as a result of house renovations which have enabled us to now accept an offer on it that will give us a very good profit allowing us to pay all debts off in full and leave us with a 20% deposit for our next place.

I just want to know if this single bank charge will have a detrimental effect on a full application when we make it.

ACG

Its unlikely to assuming everything else is fine.

The living in an overdraft (assuming your monthly payments on the new mortgage is higher) might with some lenders. Although i suspect you should be fine with a 20% deposit.