Will being in my Overdraft/money deposit affect me getting a mortgage?

jdotr

Hi everyone.

I was wondering if someone could possibly give me some advise as i have seen a house which i really like and i know it wont be on the market for long before it has been sold.

Im a first time buyer & due to the houses in this area being sold like pancakes i doubt there will be enough time to use the goverment "help to buy" scheme as it can take up to 8 weeks.

My current circumstances are pretty good. Im 24 and have a well paid salary . My most recent job is contracted. Ive been here for 4 months and have had various contract positions previously. I have 1 credit card & i have had 1 late payment fee since ive had it & it has a small amount out standing - which i pay back montly to improve my credit score.

The problem is i have a overdraft sum available of £2000.00. In the last 18 months ive pretty much been using overdraft money available. I havent gone over the £2000.00 limit (just my bank balance has been - £-200 etc). Ive been pretty much withdrawing cash and saving the cash seperatley (dont ask me why - thinking back i know it was stupid )

Will being in my overdraft for the last 18 months affect me from getting a mortgage or even a joint mortgage? As my last 3 months statements show my salary being paid but transactions/withdrawals making me go into my overdraft.
Also im planning to deposit the money i have saved into my account. Will this also stop me from getting a mortgage as it will show a sudden boost of money? Will i need to show the last 3 years of statements to proove where i got 30% deposit ?

One last question.. If somene helps me with the deposit will they have to show proof of where they got the money from?

Many thanks

J

Thrugelmir

jdotr wrote: »

If somene helps me with the deposit will they have to show proof of where they got the money from?

Evidence may well be requested as to the source of the funds.

Clear your overdraft and credit card.

Get saving.

Playing games won't get you anywhere. Incoming regulations will result in a detailed examination of personal finances when a mortgage is applied for.

jdotr

Ok thanks. And getting the source of funds shouldnt be a problem (i dont money launder or sell drugs lol)
So as long as i can get the 30% deposit & put it in my bank account i should be ok as my salary x3 is more then enough? I was planning to apply to put the offer/get the ball rolling this weekend. Or am i being too eager

bonbon49

I have an overdraft, which I do use, and our deposit was put into my savings account a few months before our purchase (I'd been saving it in cash until then and stuck it in the back as soon as we found the house we've now bought).
Our lender was happy with the overdraft as I had never gone over it, and because I could prove where the deposit had come from they were happy with that too. It will depend on each individual lender, but ours was fine.

Wozza85

Some lenders won't mind, there have been various people on here including myself that use their overdraft often (mine because of habit really) and have been accepted. One poster was in his overdraft even after pay day.

NewbuyerNE

I'm always in my overdraft as my salary is only £200 more than my overdraft limit and so I always go into each month.

What I did was, instead of putting my savings into my account on pay day and then having -£1100 at the end of the month, I left the £800 in and then transferred it the next payday - saving in arrears.

I got my mortgage offer in the post today