Will my over draft affect my mortgage application

Maddy13

If the lender has scheduled the valuation to take place, are you past the point at which it can be sent to the underwriter (on the basis of affordability)?

PheoUK

Maddy13 wrote: »

If the lender has scheduled the valuation to take place, are you past the point at which it can be sent to the underwriter (on the basis of affordability)?

I've passed affordability, credit checking OK, but it has gone for manual checking with the underwriters (advisor believes mainly as it's the branch's first H2B...).

Thrugelmir

PheoUK wrote: »

I've passed affordability, credit checking OK, but it has gone for manual checking with the underwriters (advisor believes mainly as it's the branch's first H2B...).

Underwriters make the ultimate decisions and sign off mortgage offers. HTB is subject to very stringent underwriting by all lenders.

PheoUK

Thrugelmir wrote: »

Underwriters make the ultimate decisions and sign off mortgage offers. HTB is subject to very stringent underwriting by all lenders.

Exactly, hence not counting any chickens and being nervous like the OP - despite there theoretically not being a problem.

sdl1503

All our info sent to the underwriters today and Abbey are working on a 3/4 day turnaround. Fingers crossed!

Kch

What was your outcome?! I'm in the same position applied for a mortgage with santander a help to buy mortgage with 8% deposit. Both me and my partner have good income but I have used my overdraft in the months before applying (latest month in the black and never fully used it to the max) we have a dip now just waiting on a decision. I'm so nervous. I checked my credit score with all three agencies and am in the excellent range on all three but I'm worried that I will fail the affordability test because I've gone into my overdraft.

sdl1503

Kch wrote: »

What was your outcome?! I'm in the same position applied for a mortgage with santander a help to buy mortgage with 8% deposit. Both me and my partner have good income but I have used my overdraft in the months before applying (latest month in the black and never fully used it to the max) we have a dip now just waiting on a decision. I'm so nervous. I checked my credit score with all three agencies and am in the excellent range on all three but I'm worried that I will fail the affordability test because I've gone into my overdraft.

Overdraft DIDN'T affect our mortgage application with Abbey/Santander on a help to buy mortgage. I hope this eases your worries a little.

firsttimemover

ChopperST wrote: »

Ours was rejected for using our first direct interest free overdrafts in the months leading up to the mortgage. The underwriter cited the use of the overdraft as showing we were living beyond our means. We appealed and sent in our various savings and investments statements showing that we had more than enough in surplus but it was a very stressful four weeks.

I'd take it as a lesson learned not to be in your overdraft prior to a mortgage application in the future.

Which mortgage co was this with and did you get it overturned successfully?

I'm panicking about this now - I use my £250 interest free overdraft with First Direct simply to earn interest on it in another bank - my MA didn't think it would be a problem when I mentioned it, but now I'm thinking is it best to pay it back now? Although it is probably too late as the CRAs will take a while to catch up. I'm applying with Abbey if anyone has any advice about this?

charleyroo

just pay it back, how much extra will you be earning on £250 (not much) and also if it's called into question you will have fresh bank statements showing that it's paid off.

Kch

JasonBrown83 wrote: »

A quick update, our MA told us yesterday (05/02/14) that our application has been passed onto the underwriter! I don't think I've been this nervous and stressed in a long time, I hope our application is not rejected for some reason.

Did you get your mortgage approved?