Advice about Bank Statements & Overdraft

Legacy_user

Look time forum visitor and finally joined. I have read and researched everything I can about applying for a first time mortgage and I require some general advice.

I understand you may have to supply bank statements showing regular outgoings. My question is I withdraw a regular £200 each week for living costs and after all of my bills before my wages are paid in my bank balance is always at £20. Somtimes I have gone into my overdraft slightly.

Can this affect any affordability for mortgage and do lenders require you to have a good bank balance to show this. It just that all these media reports about living on beans on toast is really worrying me. I understand some may say see a broker but I would like to know first hand experiences. So any advice is really appreciated.

ashp_2

My bank statements looked absolutely terrible in terms of spending and cash withdrawels when I applied but for some reason they never requested a copy which I was quite happy about!!

It's important to avoid going into your overdraft if possible. I don't think the bank balance is a major thing. Affordibilty is highly important, Check out the affordibilty calculators online.

LKRDN_Morgan

I think going into the overdraft every now and then is fine. It's permanently living in it that's the problem. I'm a FTB and just been accepted by Santander. Out of the 3 months of bank statements I was in the overdraft twice. Granted it was only £50ish each time. My broker said it wouldn't be an issue and Santander never mentioned it

System

Thanks for your replies. I understand that some providers use ONS figures for affordability. As I regularly withdraw money each week for living cost but just worrid if I apply the provider may think this is a regular outgoing.