Bank statement concerns

ThisTime

Hi, I will be making my mortgage application in the next week and i am concerned about my bank statements. we have den going it our overdraft at points during the last 3 months with xmas etc and I wondered how much this can effect the decision ?

It is cleared every months but sometimes dipped into again..
we have been making overpayments on our current mortgage every month of about 30% of the monthly payment.

What is it there looking for on statements ?
we eat out a lot now but wouldn't when we move so if they look at expenses it will be different to when we have a bigger mortgage.

I appreciate any input.

jamesd

Use of an overdraft facility is a negative factor, more so if it is regular. It may well be enough to prevent the fussiest lenders from considering you but won't block you from getting a mortgage.

Making overpayments of 30% while using an overdraft routinely would be a sign of financial mismanagement and a negative factor.

Too late to adjust your spending habits. They will consider them when it comes to looking at your expected spending.

I doubt that you will be declined but you might find that the amount you can borrow would be restricted, or the available LTV levels from a particular lender. If that happened to take you below the amount you needed then it would be a decline. The greater your deposit, the lower the chance of trouble. 75% LTV is likely to be easy enough, 95% much more troublesome.

kingstreet

Some lenders will have an issue with this, some won't.

Some lenders ask for bank statements, some don't.

The significance of this issue is therefore going to vary depending on your choice of lender.