Halifax mortgage application- regular overdraft us

Ellaneza

Hi!
Looking for a bit of advice/ reassurance here. I am now more than a month stressed and starting to have sleepless nights....
My partner and I have an offer accepted in a house:
House value: £22000
Deposti: £22000
Joint income: £69000. Both on permanent no contracts, I work for the NHS and my partner in marketing.

We bank with Halifax since the last 4 years. Out credit history is quite clean ( my partner has got one default in 2014 of £4 due to a forgotten not used account, paid within a month) I have applied for a loan for my masters, already paid and have a credit card with a £2500 debt ( I have never missed a payment and they have been increasing my limit without my request for the past 4 years up to £6800)
Otherwise we have been paid bills and rent on time ( our rent is £1100 and mortgage would be £680, that is crazy, I know)

Agreement in principle accepted by almost every bank... went straight away with Natwest ( out of naiveness, just a nice adviser offering a good deal) and were declined, were told that due bad account conduct ( use of overdraft). Went to a broker that said it was because of my partner's nationality the reason they acted that strict and he is very confident we will make it with Halifax.

So these are our two problems:
1- my partner is overseas, with visa because of myself, due to renew in a couple of years ( not much of a problem the renewal)
2- overdraft.
We have a current account where we receive income and pay bills. Then money goes to my personal account ( my daily expenses) my partner uses both our current and her own, so some money goes also to her own and some stays in current, part is to pay credit card and the remaining for savings ( I try to make this the bigger amount to avoid us see big amounts of money on our "daily expenses" and hopefully be more careful, but the plan is to transfer from savings part of the money in doses as needed)
We were agreed a £100 overdraft when opening the account ( our financial situation has improved lots since) that out of habit we have been using as part of our available money ( just as lifestyle choice), so approx 5-7 days every month we are seeing as using it ( we have available money on myself part and savings) Because of that on not many, but some occassions we had late transport bills coming in and exceeding that amount, those ones paid immediately in thw account. We had a total of £70 exceeded on the last 6 months statements. It is a money that we did not use out of necessity, altgough I know now that might not have been the most responsible thing to do.

Do you think that if we already have a DIP with Halifax, that overdraft thing would not be a problem? I mean, they have access to all our accounts, are aware of our movements around. Any advice, please!!

Lilla_D

Quite a bit of info is given above, but without seeing the credit file and other details, no one here can really say for certain that you will be fine, if you go with one bank or another. You should really speak to a broker, provide all the necessary info and docs, and then the broker will be able to advise you.

Just to bear in mind though, lending criteria regarding bad credit history and overdraft usage is not always black and white (in fact, it's mostly grey), so dependent on the details, the broker might only be able to say that going with a particular lender is worth a try, but the outcome cannot be guaranteed.

Also, a 90% LTV mortgage is quite a high risk for lenders, so the outcome may not be as positive as if you were putting down 25% deposit.

Having said all the above, based on the details you mentioned, Halifax may be a good choice, but I think you'd benefit from a broker's help both regarding the upfront work and then going through with the mortgage process. It might just help you having less sleepless nights if you have someone to ask along the way.

kingstreet

How long has your partner lived and worked in the UK (exclude any time as a student?

What is the expiry date of his visa?

Please explain this "Agreement in principle accepted by almost every bank." How many credit searches have you had?

Do you have all three versions of your credit file to establish if your partner's default is visible on all of them?

Ellaneza

Hi, thank you for the advice.
We are actually seeing a broker. We will put our application in on Wednesday. Still it's a long time to go, and of course, would not expect anyone to decide whether we will be successful but to hear opinions about what might weight more, if our bad stuff or the bit of the good one!

Ellaneza

Hi!
My partner has lived and worked in the Uk for 4 years and he's actually earning more than I do. Visa expires on July 2020, but by being together renewal is guaranteed ( we might not be happy with the mortgage either if we divorce...)
I mean that we walked in different lenders and all were happy to help us with the details provided. We just had a formal agreement in principle with Natwest and now Halifax.
My partner's default is visible. Yes...

I think we are actually quite borderline, guess it can go either way...

Ellaneza

Hi guys!
Just by reading lots of threats from really worried people as us and know nothing about what happenned next...
We got our offer!! yet verbally, awaiting the written one and hoping everything goes smooth from now.... Fingers crossed! one step closer.