Mortgage with returned DD on bank statements

ruby2sday

I’ve got a mortgage in principal and put in an offer for a property, which I’m fairly sure will be accepted, however I’m worried about being accepted for a mortgage as I’ve stupidly had my last 3 months Vodafone direct debits returned. I paid them all before each month was up so they won’t appear as late on my credit report (I have a good credit rating) but I just kept not having quite enough money in that account on the day the direct debit was taken out and then paying it a week or so later. If I’d known I’d be applying for a mortgage I wouldn’t have let that happen but here we are! 😬 Is this likely to be an immediate red flag for lenders? Do most request bank statements or will they not even see it?

amnblog

Which Lender?

Blackbeard_of_Perranporth

Your credit score is a myth! I would better sort out why you are paying you bank money to have your DD stopped. If you cannot budget this, you could lead to problems later when you do have a mortgage,

AnotherJoe

How will you afford a mortgage if you struggle to make your mobile phone payments?

Brock_and_Roll

May not be a red flag as such but to keep with the motor racing analogy, it may well be a "yellow flag" i.e. a warning/negative item.

Having several DDs bounced shows the lender:

1) the borrower is financially stressed

AND/OR

2) The borrower is poor at managing their finances

ruby2sday

Because I currently rent in London, and my mortgage repayments will be less than my current rent.

AnotherJoe

You still don't seem to have it together enough to sort out a simple monthly mobile phone payment, not just financially but organisationally, given the damaging effect it would have upon your ability to get a mortgage and what rate you would be eligible for.
Given you must have some substantial savings for fees and deposit, I suggest you keep a couple hundred extra of those in your current account to avoid such issues in future.
Other than that I don't see what else you can do as you are apparently right in the process of buying so what's done is done. Some lenders will ask for statements a few won't. There's nothing can be done about it now.

Blackbeard_of_Perranporth

Blackbeard_of_Perranporth wrote: »

Your credit score is a myth! I would better sort out why you are paying you bank money to have your DD stopped. If you cannot budget this, you could lead to problems later when you do have a mortgage,

I refer OP to the answer I gave yesterday!


Of course they can ignore it ...