Accord Mortgage - spending habits 2 March at 8:19PM in Mortgages & endowments 5 replies 356 views

FirstTimeBuyer_2023

Hi, I'm a FTB- to-be hopefully. Have a DIP with Accord, and hope to apply for mortgage asap. I have no debts, just an OD of couple of hundred which I can clear immediately. Other than that a student loan. I live within my means, however, in recent months I've spent a lot of money which is on my bank statements. This is due to x2 family weddings, celebrations/events, 2 holidays, plus I've been helping out a friend in recent months who was in serious financial trouble, and became unemployed had loans/fines to pay off etc. This can be seen on my bank statement as transfers so its not like I've been just spending it on shopping etc. Friend is in better situation now thank god, and will eventually pay me back. My concern is, will my outgoings on my statement be seen as a negative? Will it affect my chances of getting a mortgage approved? I should add, I only helped the friend and their family because I could afford to. My deposit was saved and not touched, and I have an emergency fund too. Otherwise my outgoings are minimal. I have approx 200 in DD, then household bills which are split amongst the others I reside with.
I understand that Accord use a common sense approach but I'm just worried my bank statements won't look too good. Should I wait until my bank statements show a better picture of my spending? Or should I trust that Accord will use a commen sense approach?
Anyone who works at Accord or had a similar experience able to offer advice/insight? 
Many Thanks

kingstreet

FirstTimeBuyer_2023 said:

will my outgoings on my statement be seen as a negative?

Probably not even noticed. Although they may question a new DD for £16 as they did on one of ours this week.

They are looking for undisclosed credit and large or repeated commitments that may be debt repayment, maintenance, child care etc.

Postik

One of my concerns in the past regarding this is that they might look at things like kids swimming lessons, chinese takeaways, etc, etc (these things sound trivial but they all add up every month).  But my understanding more recently is that they don't care about these things because they know if it really boils down to it you can stop paying for them.  So I suspect they are more bothered about the things you aren't able to stop paying for (child care, loans, etc).

FirstTimeBuyer_2023

Postik said:

One of my concerns in the past regarding this is that they might look at things like kids swimming lessons, chinese takeaways, etc, etc (these things sound trivial but they all add up every month).  But my understanding more recently is that they don't care about these things because they know if it really boils down to it you can stop paying for them.  So I suspect they are more bothered about the things you aren't able to stop paying for (child care, loans, etc).

Okay, that's good to know. Thanks

Sncjw

I'm concerned you say you live within your means but you are in your overdraft. This needs cleared asap..it wil likely show on your credit records that you have used this and if it's regular occurrence it could show warning bells to them that you aren't living in your means .

FirstTimeBuyer_2023

Sncjw said:

I'm concerned you say you live within your means but you are in your overdraft. This needs cleared asap..it wil likely show on your credit records that you have used this and if it's regular occurrence it could show warning bells to them that you aren't living in your means .

Hi, thanks for the response. The overdraft is only used when a DD leaves my account before I've had a chance to transfer funds into in from my other account (where my salary is paid into). 

Would this still be an issue?