Halifax mortgage application worries

DanoNexis

Hey folks. I'm hoping someone can settle my over worrying brain.

Me and my better half have found our perfect house to raise our Wee one.
We got an agreement in principle a few weeks ago from Halifax, now we are going to meet my broker tomorrow with relevant documents. Proof of deposit, I.d. And 3 months bank statements.

What I am worrying about is that while my bank statements look good, I have still used my overdraft every month, yet never going over my arranged amount. So I'm not too concerned about mine.
But the other half, when I was printing off hers I came across 3 unarranged overdraft usage charges in a 3 month period. She pretty much lives in overdraft as she is off on maternity leave and I cover all the bills.

I'm just worried that we will get refused on application because of this and a few other little bets on my statements.

Both of our credit scores are good.

I have read that many people didn't even need to provide bank statements to Halifax, I really hope this is the case with us.

amnblog

Your broker is the best route for, this question due to knowledge of your case.

DanoNexis

He says it will be a problem . . . . If they ask for the statements 😕

amnblog

He, is right. What about the 'few other bits' on your statements?

DanoNexis

Just that I've had a couple of £10 bets on Ladbrokes and that I have gone into my arranged overdraft each month but back into the positive figures within a few days.

But what are the odds of Halifax asking for the statements?

AFF8879

DanoNexis wrote: »

Just that I've had a couple of £10 bets on Ladbrokes and that I have gone into my arranged overdraft each month but back into the positive figures within a few days.

This is not good - mortgage lenders tend to dislike anything linked to gambling that shows up in your bank statements, as it can indicate lack of self-control with money - even though the amounts are tiny - another bug bear they have is multiple cash withdrawals on the same night (which shows lack of ability to budget)!

Aside from this, lenders generally only use bank statements to a) prove your income is being paid into your account eg BACS, and b) to uncover any regular commitments that you have not disclosed on your application e.g. child maintenance, gym membership, phone contracts etc.

They are usually not so interested in picking holes in spending that is clearly irregular/not committed, but each lender is different and some are stricter than others....your broker would be the best person to advise here.

Thrugelmir

DanoNexis wrote: »

He says it will be a problem . . . . If they ask for the statements 😕

Depending on the timing. The overdrafts will show on your credit reports. Always a concern for lenders as suggests that you don't manage your finances well. Do you owe any money on credit cards or loans?

DanoNexis

I use my arranged overdraft every month as does the other half. But she has gone over her arranged overdraft once a month for the past 3 months.
I have outstanding car finance (never missed a payment and only one year to go on it) and a credit card that I pay towards every month but have only had one purchase over the past year and a half.

csgohan4

Do you think you can cover the mortgage when you both live on the edge and go into overdraft? leaving nothing for emergencies like a broken boiler or emergency repairs

Anzhelka

Don't want to scare you but our mortgage application was declined in the past for the reason of "unplanned overdraft". They also may not be happy about living in overdraft. Where your deposit then comes from?

amnblog

DanoNexis wrote: »

Just that I've had a couple of £10 bets on Ladbrokes and that I have gone into my arranged overdraft each month but back into the positive figures within a few days.

But what are the odds of Halifax asking for the statements?

You do like a bet don't you!

The Bank is unlikely to worry about a couple of bets. Your Partner running into debit on her Bank Account without a prior agreement is a potential problem if Bank Statements are requested.

You have both been naive here and I hope it does not come back to bite you.