Moving forward

loveyourmoney

Hey all

My partner has dreams of owning their own home. I have spoken to them about moneysavingexpert ways, which I have adopted, and they are making changes. If someone wants to own their own home but have been in their overdraft for over 10 years how long would they need to wait, i.e. if they were out of their overdraft, until their application for a mortgage was taken seriously?

Any advice welcomed...

LYM

sourcrates

Hi,

The bank will look at the history of the account, and how much they spend on everything, no bank will grant anyone a mortgage if they think the payments are unaffordable.

There is no right or wrong answer to your question, as all lenders have there own acceptance criteria when making lending decisions, basically at months end, they should have a reasonable amount of money left after all bills are paid, credit history is important also, having no defaults or late payments is another must, for mortgage decisions I beleive most lenders look at your last 3 years credit history, but that may differ dependant on the lender.

Bouncybubbles

everytime I have applied for a mortgage/remortgage (twice in 5 years) I have been up to my OD limit and they have not batted an eyelid. However this was only £200 at the time. I guess it depends on the size of the OD and if its ever in the black at the end of the month or constantly in the red. At the time I could have paid it off in full every month however being young and stupid decided to live a decadent lifestyle and not bother but that's a different tale. I guess the only way to know for sure is speak to an advisor if you go on here there is a specific mortgage area where advisors often post. They might be of more use than me