Worried re Affordability/Santander and Overdraft

ghostghost

Hi guys, I've submitted an application to Abbey for an 85% mortgage on a 200k place. I earn 42k a year, going up to 47k in August.

I have a credit card of £495 which most months gets paid off in full. I graduated with a 2k student overdraft. When I get paid this gets cleared off but invariably I end up back in it. Through spanking the extra shifts I should be comfortably out of it and with no need to go back into it this coming payday (26th).

I've been asked to supply a bank statement to show proof of my wages being paid. I'm currently overdrawn about £700 as I've been waiting for work to reimburse a course I went on. Should I wait until payday to send the statement across when my bank balance will be nice and fulsome or just do it now?

I had a spare few moments and searched for their affordability calculator and nearly browned my pants. It has a section for overdraft, when I put in £400 the amount I borrowed dropped from £170,000 to £130,000 and so I've panicked and hence this post.

So should I wait until payday to send the statement, bearing in mind they'll still be able to see I was overdrawn or just send it now? Will this affect my chances of getting the £170000 mortgage? After this month (it really was a lot of overtime) I won't need to use my OD facility again. Argh

Thanks in advance

spidercrab

I know all lenders have different criteria but I recently applied for remortgage and had to supply 3 months bank statements.

Cazza3010

We have been just turned down for a mortgage (adverse one so maybe different! ) for being in the over draft every month ! They didn't like seeing that ! So not sure waiting till ur not in would help as they will want to see the 3 months.

ghostghost

and did you have any issues with being overdrawn?

ghostghost

oh dear cazza, who was that with?

Cazza3010

It was with precise mortgages, their very tight with it all and affordability, rightly so I suppose as over drafts are a loan each month so looks like u can't live on wages ! But if ur like us and had it years and never really thought about it I would get rid of it ! We have and are now waiting 3 months to re apply again !
I'm sure Santander will be different than precise though.

ghostghost

thanks for the advice. I've already reserved the plot and it should be completed by the end of may so time is also a massive consideration. I never envisaged being in the position to buy a property this early but received a windfall which would allow a deposit. If i knew this i would've been far more organised re finances. A mortgage broker told me that being a doctor building societies look a bit more favourable at me, but I'm not so sure?

Cazza3010

Good for you go for it! They may do as ur never been out of work !
We wasn't either, a cheap house come up so we went for it but we will see if it works !
Wish u the best of luck

ghostghost

Cheers mate. Good luck to you too!
I'm an optimist so I'm hopeful it'll work out, maybe that's not always a good thing though!

Wozza85

I'm the same and I applied with Santander, underwriters came back asking about some payments on statements but didn't mention my usage of my overdraft, but I am still waiting on them to give the go ahead on the valuation.

Wh05apk

When you applied originally it would have calculated affordability and you would have been ok, provided you are within an agreed overdraft, and the balance is not deteriorating you should have nothing to worry about.


They would have been able to see your use of your overdraft by searching your credit report, so they will already be aware of your use of it, and hopefully the gradual improvement.


As an aside, if you have 15% deposit and are a higher rate tax payer, why are you using an overdraft?