1st Time Buyer Help....

danjo_3

Newbie on here so please be nice to me!!!

I'm about to buy my first house on my own. Now I normally run my bank account well but unfortunately today, I found out that Orange have taken the money for my mobile phone bill out of my account 2 days early and 2 days before I get paid. I have consequently gone overdrawn and I'm really worried that this is going to affect my mortgage application, which all being well will happen in the next few weeks.

My credit history is pretty good, I have no outstanding loans, credit cards or CCJ's and haven't gone overdrawn for well over 12 months now, but due to the current financial climate I am concerned that this mishap is going to cause me a problem even though it wasn't my fault.

Any help or comments will be gratefully appreciated.

Andy_Hamilton

Using an agreed overdraft for small amounts now and again should not really cause too much of a problem, the fact you have so little in your account to be so close to £0 would be more of a concern.

Is this account for bills and you save somewhere else?
Can you afford the mortgage your going for?

Zammo

Why do you want to buy now? House prices are falling rapidly at the moment. If you want to prove your financial acumen to the banks then hold off for another few years and save yourself thousands.

danjo_3

I've got my deposit saved in a separate account and only live to my means. I've been watching the property market closely for the past few months, and feel that I'm now in a good position to buy.

danjo_3

Oh yeah, forgot to add that i've worked out my living costs and i've been to see several independent mortgage advisors to get a good idea of mortgage repayment costs. I work in a sales environment with a decent basic circa £23k and have based my living costs on only my basic and not my commission (which at the moment is regular and adds over £600 to my monthly take home pay).

trudiha

Danjo, lots of people are going to come along and tell you that it doesn't matter because it didn't matter a year ago or even a few months ago. I've got a 25% cash deposit and a faultless credit history, I've never been overdrawn. My partner is a little more slapdash but she hasn't been overdrawn or missed a payment in three years.

The HSBC just turned us down for a mortgage because her landlord took her rent money out three days early, despite the fact that he paid the overdraft fee back in three days later because he had admitted that he'd made a mistake.

However, The Abbey have gone through the application process without asking to see our bank statements, so maybe if you explain the situation to your mortgage broker before you apply he/she will be able to tell you about the checks that the different lenders do.

Best of luck.