First Time Buyers - Likelihood of acceptance

jchantler

Morning everyone, my partner and I have found a house we'd like to buy - we've booked a viewing and got an agreement in principle from Barclays. When we booked the viewing, the Estate Agent offered us a free meeting with their sister companies Mortgage Advisor, can't hurt to see what's out there, right?

Prior to the meeting, they've asked us to gather some documents including three months bank statements. My only concern is that I'm in my agreed overdraft in two out of three of the months (the agreed limit is £500.00 and I've not reached that, this is not a usual occurrence, just bad timing) - how much do you think this will impact on any mortgage applications? We both have relatively good credit, pay off our credit card balances monthly and have no negative factors on our credit reports - the only thing I'm worried about is this overdraft! Any advice would be appreciated.

Thanks,
Jacob

Tiglet2

The lender will look at your income and expenditure, they will want to see any credit agreements you have, i.e. credit card statements, car loan documents, any other finance agreements you have and any outstanding debt. They will assess whether they think you can afford the monthly repayments for the mortgage including if mortgage rates rise. If you are comfortably able to afford the mortgage, then it shouldn't be a problem. If the lender is concerned about your overdraft debt, they may request that you clear it upon completion (and they will require evidence to show the cleared balance). If they think you can't afford the loan amount you want, they may reduce the amount they are willing to lend (e.g. 3.5 times your salary instead of 4 x your salary) and therefore you may have to find some additional money from somewhere (savings/parental gift) to bridge the gap.


Good luck!

System

We have just got a mortgage with Leeds building society. I was panicking as my husband is in his agreed overdraft by quite a lot every month (bad choices when he was younger) but every time he gets paid he comes out of it and we have credit card debt 0% interest till next year of 2000 between us and car finance of 161 a month. Between us we earn 38000 a year. Both of us have good credit scores.

There are lenders out there that will give you a mortgage I'd definitely see a mortgage advisor as they can see which mortgages you are likely to be offered.

Good luck.

steampowered

The repayments you need to make towards these other debts will reduce the amount you can afford to pay each month, so will reduce the size of the mortgage lenders are willing to offer.

haf1

the Estate Agent offered us a free meeting with their sister companies Mortgage Advisor

Why would you go with a mortgage advisor affiliated with your estate agent (who gets paid for bringing in this new business) instead of choosing an independent mortgage broker, yourself?

SG27

jchantler wrote: »

Morning everyone, my partner and I have found a house we'd like to buy - we've booked a viewing and got an agreement in principle from Barclays. When we booked the viewing, the Estate Agent offered us a free meeting with their sister companies Mortgage Advisor, can't hurt to see what's out there, right?

Prior to the meeting, they've asked us to gather some documents including three months bank statements. My only concern is that I'm in my agreed overdraft in two out of three of the months (the agreed limit is £500.00 and I've not reached that, this is not a usual occurrence, just bad timing) - how much do you think this will impact on any mortgage applications? We both have relatively good credit, pay off our credit card balances monthly and have no negative factors on our credit reports - the only thing I'm worried about is this overdraft! Any advice would be appreciated.

Thanks,
Jacob

Thank the estate agent for their generous offer of a free mortgage salesman appointment and tell them you look forward to booking it as soon as youve had an offer accepted.

Offering on a house is a bit like a game of poker. If you see thier mortgage advisor beforehand you will be playing with all your cards laid on the table!