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Will a silly mistake in breaching overdraft limit stop me getting a mortgage?
bclark
Posts: 882 Forumite
I have basically taken my eye off the ball of our personal finances over recent months due to my wife having a baby. I basically didn't think about her wages going down due to maternity leave and kept a direct debit going into a savings account and also basically didn't look at our online account for a couple of months.
This has meant that for November and December we have breached our agreed overdraft limit (which was £250, I thought it was a lot more) and been charged. I can't argue with the charges as this was my fault and I have now sorted out the finances so that this doesn't happen again but I am basically worried that this will be a big black mark against us when we look to move house later this year.
We bank with Nationwide who are also our mortgage provider, and have been for ten years. We have never had any financial issues before, and in fact have about £2000 sitting in a savings account linked to our current account at the moment.
On the face of it we are model customers and the amount we would be looking to borrow for our new house is about 70% of what their calculators say they would lend us but I am now worried that a history of them of breaching an overdraft limit would not be looked on well at all. Does anyone know how this would get looked upon with the new stricter lending criteria?
When we come to apply are you still able to speak to someone to explain something like this or is it a strict black or white analysis by a computer somewhere?
This has meant that for November and December we have breached our agreed overdraft limit (which was £250, I thought it was a lot more) and been charged. I can't argue with the charges as this was my fault and I have now sorted out the finances so that this doesn't happen again but I am basically worried that this will be a big black mark against us when we look to move house later this year.
We bank with Nationwide who are also our mortgage provider, and have been for ten years. We have never had any financial issues before, and in fact have about £2000 sitting in a savings account linked to our current account at the moment.
On the face of it we are model customers and the amount we would be looking to borrow for our new house is about 70% of what their calculators say they would lend us but I am now worried that a history of them of breaching an overdraft limit would not be looked on well at all. Does anyone know how this would get looked upon with the new stricter lending criteria?
When we come to apply are you still able to speak to someone to explain something like this or is it a strict black or white analysis by a computer somewhere?
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Comments
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What is it your looking to do?
If your looking to borrow 95% LTV from a strict lender next week thats going to be more of an issue than trying to borrow 75% LTV from a lenient lender in 12 months time.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I suspect you will get away with this error but it may need managing by a broker.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
What is it your looking to do?
If your looking to borrow 95% LTV from a strict lender next week thats going to be more of an issue than trying to borrow 75% LTV from a lenient lender in 12 months time.
It will be about 70% LTV with Nationwide, we have been with them for about ten years without any issue.
We won't be looking to do anything until later this year, probably the autumn.0 -
Are you moving house or just switching products?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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I dont think at 70% LTV it will be a major issue especially in 8-9 months time.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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