Can anyone tell me what affects a mortgage application. Being in an overdraft on your current account? Having insufficient funds to make a payment in your account, but putting the funds in there later that day so it clears the same day? Being late on payments that aren't set up as Dorevt debits or standing orders? (Eg council tax paid by phone, but often late) Thank you for your advice
Hi, I work in financial services, but am not an underwriter. However I know all of those things would indicate to your lender that the affordability is not there. It sounds like you are just too tight to the wire- would your mortgage be substantially less than any current rent payment (bearing in mind there are other costs with a mortgage/home ownership that there aren't with renting)?
Why isn't your Council tax set up as DD especially if you aren't organised with payments? Do you have a financial problem or an organisation problem- if the latter it should be easy to get on top of with a bit of effort surely? I would want to be seeing 3-6 months of "clean" statements before applying for a mortgage, if indeed it is the right thing for you even then.
The second and third on your list don't appear on a credit file so these won't affect anything, despite it being very poor money management. Being in an overdraft will have an impact. If it is an unauthorised overdraft then it is unlikely the person will not get a mortgage with a major lender unless it was a one off and several years ago, and there are no other late/missed payments.