Mortgage with returned DD on bank statements

ruby2sday
ruby2sday Posts: 34 Forumite
in Mortgages & endowments
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?

Comments

  • amnblog
    amnblog Posts: 12,442 Forumite
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    Which Lender?
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Blackbeard_of_Perranporth
    Blackbeard_of_Perranporth Posts: 7,605 Forumite
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    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
    AnotherJoe Posts: 19,622 Forumite
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    How will you afford a mortgage if you struggle to make your mobile phone payments?
  • Brock_and_Roll
    Brock_and_Roll Posts: 1,207 Forumite
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    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
    ruby2sday Posts: 34 Forumite
    Because I currently rent in London, and my mortgage repayments will be less than my current rent.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    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 Posts: 7,605 Forumite
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    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 ...
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