5% Mortgage

Char88

Hello,

I've got a question about 5% mortgages. We have our mortgage in principle and have found a house for much less than the maximum we were offered.
My only concern is that I dip into my overdraft by the end of the month every so often. The last two months I've been in it by pay day and I was wondering if this would affect my chances of getting a 5% mortgage. I know we have to be 'squeaky clean' to get a 5% mortgage according to the bank, and other than that we are. I was just wondering if this would impact on our chances and whether we should just hold off for a bit.

Any advice would be greatly appreciated.

Grampus8

I assume you mean a 95% mortgage?

shortchanged_2

Do you have any savings over and above your deposit? If so why are you risking going into your overdraft on occasions?

Was your deposit saved by yourselves or was it gifted?

If not it would look to someone like you are barely able to afford month to month.

ACG

It will depend on the lender.

Some will see it as agreed money so you are still living within your means, others will look at it and think you are hitting borrowed money - they may then look at your overall application, are your expenses going to increase/is the deposit saved/gifted etc.

Really it comes down to the lender and underwriter.

Thrugelmir

If your finances are stretched would it not be better to wait a while longer before obtaining a mortgage.

DevCoder

Natwest for example would want to see you out of your overdraft for 3-6 months.

Char88

Thank you all for the advice. I think I was just putting too much away too quickly! I may have to save a little less for a little longer.

Thanks again.

Babybell86

My hubby and I both have overdrafts that we regularly dip into and we both got a 95% mortgage with Virgin, they weren't the cheapest rate but it was the option we were happiest with! I would speak to a broker as ours put our minds at rest and really helped us through the process! Good luck!!