We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
First Time Buyers - Likelihood of acceptance
Options

jchantler
Posts: 2 Newbie
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
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
0
Comments
-
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!0 -
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.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
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.0
-
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?0 -
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
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!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.8K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.4K Spending & Discounts
- 243.7K Work, Benefits & Business
- 598.5K Mortgages, Homes & Bills
- 176.8K Life & Family
- 256.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards