hree months of bank statements for mortgage, but overdrawn in one of the months

[Icandoanything]

Hi all,

I want to apply for a mortgage and have been told that because they will be taking child benefit and tax credits into account, they want to see 3 months of bank statements.

The issue is that the first month, I was overdrawn by £2000 (by limit is £2250) as I was in a job where I only got paid for 2 weeks at the end of August, having to use the overdraft. When I got paid at the end of Sept however, I was back in the black and have been ever since.

Will this effect my mortgage application or will they just want to see that the tax credits/child benefit payments? I'm a contract worker so am already on tenterhooks about application but am buying with brother who has a permanent contract. I also have an excellent credit score - over 750 which I've been told is higher that most in the Uk (if that's true!)

Anyone have any experience of this?

[Stylingwax]

I would explain the situation up front to the lender or broker or whoever you are dealing with. In writing preferably so you are being totally honest. I had a funny set of bank statements when I applied for a mortgage with a load of work related expenses going out which took me right down to zero, but I explained it was a one off and they didn't cause an issue.

[Icandoanything]

Can I ask when this was (year wise) and who the mortgage was with?

[Bearbehind]

Have you spoken to a broker OP?

There sounds like quite a few complications here.

The overdraft use on its own isn't necesarily a problem but it is one adverse factor in your application.

It sounds like there are a few others- a new job, a reliance on tax credits for affordability, contract worker.

Also, whilst credit scores are a meaningless number dreamt up by the rating agencies to get your money, 750 (if it's with Experian) isn't very high (even though it is above what they call 'average') indicating there might be some adverse factors on there too.

Your best bet would be to speak to a whole of market broker to ensure you take the best route in your circumstances. Many font charge a fee as they get paid by the lender.

[HappyAsASandboy]

We have just remortgaged and sent off bank statements, one if which had a £15 charge for using the overdraft on it. I'm not sure if it actually showed a negative balance at any point, may have hair been a charge from the previous month IYSWIM.

We also sent bank statements in my maiden name, with a previous address (because I am lazy and have never changed it ) and all sorts of other anomalies. I just wrote a letter explaining everything I could see might raise a question. They did question random payments off the statement, but didn't question the things I'd written the letter about.

We were approved :)

This was in 2015 and with Chelsea Building Society (part of Yorkshire Building Society).

Good luck!

[Icandoanything]

I have got a mortgage broker,just wondering if anyone else had been in this situation before contacting him.

I was intending on waiting until the new year. But I have seen a nice house and if possible, would put in an offer.

My issue is I don't want to miss out on a great house if the bank statement thing isn't a massive issue, but at the same time, don't want to apply and get rejected if my rejection is down to 1 month of a bank statement

[BikeRunSki]

Can you wait until next month and give them Sept, Oct and Nov?

[Icandoanything]

It wasn't until the end of Sept that I was in the black so it would be start of Jan that I would have 3 months clear. And that's what I was planning on, but as I said, I don't want to miss out on a house if the bank statement thing wouldn't be a big issue and I could have applied anyway and not known!

[Bearbehind]

Op, your broker can advise you far better than anyone on here can.

It isn't just about the overdraft- As I said, that's just one factor.

No ones experience on here is going to predict how it will affect your application as there are too many other factors to take into account. You have quite a few negatives to overcome but your great house might still be possible.

Speak to you broker and ask for their opinion.

[Icandoanything]

Thanks for the advice Bear,I will be contacting my mortgage broker tomorrow but in the mean time I don't see any harm in asking if anyone has been in a similar position

[Londonladybird]

I was overdrawn on the 3 months statements I provided, wasn't a problem, mortgage last year. Good luck op!