HSBC Application - overdraft

sebastiendeg

Hi,

I'm about to go through the application process with HSBC and I have a question regarding the use of my overdraft.

I've been using my overdraft pretty much every month on the last months. The overdraft was repaid in full every month and never went above agreed limit. It was more a bad admin thing as I have have saving but didn't wan't to touch them.

Do you think that it could affect my application? I'm applying for a 480K£ mortgage with a 500K£ deposit (50%) and with a 105K annual salary, no debts or default in payment in the last 4 years.

Any suggestion?

csgohan4

do you have high outgoings meaning you have to use your overdraft last few months? It will be part of the affordability checks high deposit or not.

sebastiendeg

Yes, I did spent a lot more in the last few months... new baby, sold bikes to buy other stuff...

csgohan4

Can you afford a 480k Mortgage on top of your current spending? That will what the lender be getting from your bank statements for the last 3 months if not more if you bank with HSBC.

sebastiendeg

Yes I can but I understand that my statement don't show it. On the other hand, I have good savings, that must help to show that I don't live on the edge

Thrugelmir

sebastiendeg wrote: »

Yes I can but I understand that my statement don't show it. On the other hand, I have good savings, that must help to show that I don't live on the edge

Though what the lender will see is someone who doesn't manage there finances very well, and wishes to borrow on a multiple of 4.4 times salary. Lenders won't look at savings per se.

sebastiendeg

point taken... will have to see what they say :S

sebastiendeg

Ok, the mortgage has been approved but needs to be underwritten, I guess that this is where they will look into more details at my statements?

sebastiendeg

FYI: the mortgage has now been approved and underwritten and I have accepted HSBC's offer.

They have been very fast and efficient. I would recommend based on my experience so far.