Worried - Appointment with Mortgage Advisor this weekend

saxo_appeal

Hi all

We have an appointment with the Mortgage advisor this weekend which is when they will submit our application to Halifax for a mortgage...and I'm very worried

Us going for a Mortgage was a spur of the moment decision as we were going to wait till next year. The new houses up our way have just started being built so we went in just to ask how much to reserve we needed, next thing we were in again later placing the £99 reservation fee for a Persimmons home.

Now I've had no time to get my account running extremely well before applying and I'm now getting very anxious every day! I have a £5k overdraft but have never been above £1000 (June -600, July -800 and August -600) , and it's only, at the most been for 6-8 days then my wages go in and it's in credit again. I end up having a planned charge of about £6-£8 pound every month, although this time we have kept the account above and at present (after calling BOS) I'm only going to be charged £1 in October. The account will never go into the OD again after this.

I'm very worried that if the underwriter sees the account going into a planned overdraft they will immediately decline this. I also have one default which was satisfied and falls off next October, this was why we were waiting till next year.

When I spoke to BOS on the phone the lady said she used to work for Mortgages and she didn't think it would be an issue and the account usage wasn't bad, as long as you explain that you've changed your spending habits and as you can see for September it's been above £1500 still. Would the underwriters take the change of budgeting that fast into consideration or would they think, they have just started budgeting for a mortgage and could go back to their old ways?

We both don't have any loans, the only CC I have is sitting at £5k which gets paid £500 a month off, so end of September it will be £4500. We also pay rent at £500 a month and have done for the past 4 years, we so want to get out of this renting rut and I just feel Saturday (or during the 2 weeks wait) will be a let down.

See this is me down to a tea, over thinking things and really worried

Any help or advise would be great

Natbag

I'm in and out of a planned overdraft every month, so is hubby as we just never got round to removing it and it's handy to have a buffer. We remortgaged last year no problem and have just been approved to borrow extra to move house. It's your credit score and repayment history that's more important. Check your credit reports - Clearscore, Equifax, etc to make sure you have good credit ratings and no missed payments, defaults, CCJs etc. If they are fine then the overdraft shouldn't be a problem - obviously lenders vary in their rules and criteria, but I think Halifax are one of the more lenient of lenders, from what I've read on here anyway.

saxo_appeal

Hi Natbag, thanks for the reply

Both our credit scores on all files are in the green, the ONLY default which is left is the doorstep loan I took out years ago which drops off October next year. Apart from that we both have really good files, no missed payments or anything

Slithery

How much is your deposit (in cash and %)?

Natbag

If you have a mortgage advisor, they should have checked you both out and be pretty confident that you will be successful before applying to a specific lender - the last thing they want is for you to be rejected as it makes it harder to be accepted elsewhere and then they take a knock to their reputation and don't get paid!
It is a nerve-wracking time, but hopefully all will be well. Do a quick search on this forum for posts from others who have been in a similar situation, particularly with Halifax, and hopefully it will put my mind at ease a little.

saxo_appeal

Our Deposit is £20k for a £200k mortgage, £10k from us and a gift from my folks of £10k.

Whe we first spoke to the MA they went and done an AIP with Halifax and they came back with a £260k limit, we don't need that much so our Mortgage will be for £180k

goodwithsaving

If you are living in your overdraft now, how will you cope with repairs etc?

The_Real_Cheddar_Bob

goodwithsaving wrote: »

If you are living in your overdraft now, how will you cope with repairs etc?

making substantial spending changes.

enthusiasticsaver

I think if you are within agreed overdraft limits this should not be a problem. Your folks will have to write a letter saying the £10k is a gift and not a loan and they will have no interest in the property.

Most mortgage underwriters look at affordability. The credit card may reduce the amount they will lend you but if the AIP was for £260k and you only need £180k it sounds as if it will not be an issue. My advice would be do an soa (statement of affairs found on DFW board). Calculate roughly what the bills would be and then you can produce something which will show you can afford the house.

Does your bank account show any spends on things like gambling etc? If you are having to dip in your overdraft then what are you overspending on?

enthusiasticsaver

goodwithsaving wrote: »

If you are living in your overdraft now, how will you cope with repairs etc?

I would hope if it is a brand new Persimmons home it will not need many repairs to start with.

saxo_appeal

Hi there, sorry just looked back at the thread

We have already completed a Budget Planner online but I will give the one you suggest a whirl also, I presume it will all just be the same?

My bank account for the past few months only shows, for gambling terms, National Lottery deposits that’s about it nothing else
September - 0 as we are now budgeting
August - 18th £20, 14th £20
July - 17th - £20
June (pretty bad, maybe not) 30th £20, 5th £40, 5th £40.

Looking back at my months statements, all the most money goes on is takeaways and eating out, something which we have totally cut down on now. I look at the June’s Lottery money as a bit of fun that’s all, I don’t drink and don’t smoke and neither does the other half (good lifestyle)