Have I unintentionally scuppered our chances of getting a mortgage?

Canuck_in_Wales

My husband and I have managed to save a substantial deposit to buy our first home. But, I am worried I may have ruined our chances. 3 years ago I changed the standing order for our rent to come out of his account instead of mine & I pretty much pay for all of our day to day spending. This has meant that while we've regularly saved £800-1,000 a month, I am typically in my overdraft by the end of the month (never more than £250). The plan was that once we had enough money saved we would stop doing that and we'd go back to splitting everything 50/50, in preparation for getting a mortgage. Well, the chance to buy our first house has come up now & I wonder whether I have inadvertantly screwed us over. It's too late to change it now & there'll always be another house, but this house is in the perfect location! We'd be looking to borrow £150,000 of a £252,500 purchase price. As it is a joint application will the mortgage companies consider us jointly or will they look at us separately? We both have great credit ratings and minimal debt. Between us over 10k in available credit and less that £1,000 used. Any thoughts?

Edi81

Probably not but repay the over draft immediately so that when you apply for the mortgage it’s not showing. 

I hope you have had an interest free overdraft and haven’t paid interest for no reason. 

K_S

@canuck_in_wales I can assure you that you are worrying about nothing at all especially at 60% LTV!

Based on the limited info in your post, regular use of a planned overdraft will not have any material impact on your mortgage chances. Good luck!

Canuck_in_Wales

Edi81 said:

Probably not but repay the over draft immediately so that when you apply for the mortgage it’s not showing. 

I hope you have had an interest free overdraft and haven’t paid interest for no reason. 

Thank you. Overdraft is paid off, no, it wasn't interest free, (I know!) but it was usually 2-3 days at most so interest has been minimal.

Canuck_in_Wales

K_S said:

@canuck_in_wales I can assure you that you are worrying about nothing at all especially at 60% LTV!

Based on the limited info in your post, regular use of a planned overdraft will not have any material impact on your mortgage chances. Good luck!

Thank you! Our mortgage application was submitted by our broker at 8:30 last night, so now we wait! He agreed with you, that it wouldn't be an issue. I just worry because we've never done this before & we try hard to be financially secure after the 2008/10 crash saw us financially crippled.

getmore4less

A bit sloppy managing the cashflow  but done now,

All it needed was cutting the savings for one month by £250 or just moving the spare money just before the next pay came in rather than  after leaving you short for your spends.

As said probably won't matter as it never got out of hand.

A credit card used for regular spends rather than the current account could have also given free cashflow.

What tools are you using to manage money now?
Do you have a proper budget?

Mahsroh

I virtually never use my overdraft facility but my wife has a £200 overdraft on hers and prior to us buying our house she would regularly use it. Most months she would be in her overdraft by anything from typically £50 to £150. This was the case on all 3 bank statements that the lender (Natwest) wanted to see as part of the application. I was slightly concerned by it but didn't affect our application at all. That was with a 90% LTV.