What are my chances?

Ady1927

Ok so we have a 23k deposit on a 150k house (84.66% ltv). I have savings of 17k, my bank balance is in credit to 2k. I have a good credit score, last time I checked it was 986. I earn 39000 a year.

Problem is, in the last 3 months I have spent £400 more than I earnt because of Christmas. Over the last 3 months I have paid £760 to clear my Christmas spend on my credit card (I always pay my credit card in full). I bought a replacement TV for 499 in November. In January I paid for my car insurance in advance £350. Also included in my "overspend" are 3 payments of £265 to my savings account ( I have been transferring 265 to my ssvings account for the last 3 years)

Unfortunately, all that means that my bank balance has diminished by £ 370 over the last 3 months. In essence, I am in credit because of the money I moved to savings.

My current mortgage payments are 320 pm. We have been planning to move for a while but our house took ages to sell (and it is hard to reign in spending at Christmas). During the last 3 years my savings have grown from 9k to 17k.

Will my potential lenders see a problem with my deteriorating bank balance - despite the fact my savings balance has increased during the same time? Are lenders flexible, and will they appreciate that people spend a bit more over Christmas? We didn't go crazy , I've maintained a credit account balance of 1500-3500 over those 3 months.

I have no loans, no outstanding card balances. I have never been overdrawn. It's just the last 3 months have been exceptional with 3 extra costs that I wouldn't have had in mid-year. I know I can afford the mortgage (simply stopping my savings of 265 pm will meet the new mortgage bill of 550 pm) - but have I messed this up completely because of my eagerness to lose a monthly car insurance, paying off my cc every month and my savings habit?

Many thanks

Ady:(

Ady1927

Sorry By credit account balance of 1500-3500 I meant current account.

tobuyornotobuy

Where's the issue? You used funds in your account that were available to use? Not an overdraft? It's your money in your account to use as you see fit, you still have your savings and a good credit history... I think there are many many people who would prefer to be in your position, I'm no expert, far from it but I can't see how it will be a problem if your current account still had a credit balance in there, that's what you have extra in there for is for "emergencies or holidays / Xmas"

TopperHarris

If only 90% of other posters had your 'problems'

Ady1927

The reason I am asking and stating these are "problems" is because of the new affordability checks . Thanks for the replies.

Debtslayer

I think you're worrying too much. Everyone has exceptional months of expenditure. You currently have a good salary, mortgage, no debts and savings which are all big ticks in your favour.
From reading your first post you currently have a mortgage? I would firstly approach your current lender and ask if your mortgage is portable and the extra amount you could borrow as you are looking to move.
If you are looking at moving your mortgage I would suggest speaking to a good Independant mortgage broker who will search the whole market for you and give you a DIP of how much you could borrow. They will also help put your mind to rest about your worries of having overspent a little in the last few months

Take a deep breath and good luck with finding your new home

getmore4less

Your net worth went up in the last 3 month if you saved 3*£265 and the current account went down £370

Whats a full years spends look like

nearly £2500pm net mortgage+savings £585 where is the other £1900 going will be the key.

85% LTV and 3.25 multiple should be fine.

If the savings are extra after deposit might be worth throwing another £7k in for 80% LTV might get better rates