Preparation prior to first mortgage application?

dpclark

FOXGLOVE wrote: »

Hmm so things just got interesting. Found out in the past couple of days that my partner has just finished paying off a loan she got with Bank of Scotland a year ago. I knew nothing about this and there's been a few arguments and lectures back and forth. She increased her overdraft a bit, then a bit more and a bit more and ended up wanting rid of it so applied for a loan of £1000 to pay it off and use at Christmas.

As far as I know, she wasn't going above the overdraft or anything and her loan direct debits all paid on time etc.

She is an idiot for taking a loan at a crap interest rate when she has so much saved up, but mistakenly thought she coouldnt dip into the savings.

My question is, now where does that leave us re: mortgage?

Will it look bad on an application that she's borrowed recently? Or does the good payment and credit history help?

Personally, I think you are viewing the mortgage application the wrong way - you are hoping someone will accept you, but with a big deposit, healthy income, no debt and what sounds like two pretty safe credit files, you should be getting companies to fight for your business. No mortgage lender would exist without customers, and you and you're partner sound like pretty good ones for a mortgage.

FOXGLOVE_2

I've calmed down a bit since the other day lol

Yes was mainly annoyed at her cos she wanted me to find her the absolute best deal for her savings and has probably cancelled out any gains from that on a high interest loan.

Luckily it wasn't one of those payday loans, was Bank of Scotland flexi loan.

And yes, it does feel like I'm hoping and wishing we are accepted as this is something we never thought possible and now things are taking shape, we may actually get there.