First time buyer

[OS22]

I am a first time buyer witg a deposit and an offer accepted on a house.

I have started the mortgage application and they have asked for last bank statements..

I am worried that it will get declined due to bank statements, I am currently about to go into my overdraft (it's only 250) and did last month too.. will this stop me from getting the mortgage?

I have also had to transfer some money from my savings to my current account this month due to a dentist bill which I am worrying about too..

What does the underwritter actually look for in statements? My credit score is 980 on Experian so that seems to be fine just my bank statements seem like they could have a little clear up..

Also to add I am going from living with ex partner to living alone with son, so my future spending on food etc will not be as high as in current statements they've said they will consider this but do they really?

Depends what the underwriters look for. Generally the advice given is that they dont to see you regularly going into your overdraft as it shows lack of control on your finances, the same with going into your savings accounts no doubt.

However I wouldn't be overly concerned, have you gone through a broker?

Well I don’t know what they look for does food etc get taken into account or just monthly outgoings..

I went direct as my dad has dealed with them numerous times and found them very good

When we bought our first place, we found a broker was able to get us more. The only payments they were interested in were if we had credit card debt or car loans. When we went direct to our bank they reduced their offer based on things like gym membership and travel fares (although maybe we just had an unhelpful person!).

I've mortgaged/remortgaged four times in the past few years. I've always been between £1000 and £2000 in my arranged student overdraft (I was a student for a long time!) and it was never an issue for any of the lenders. Debts such as credit cards, loans, car finance etc are taken into account if you have them

I did speak to 3 mortgage brokers. One told me I had no chance of borrowing more than 50k, the other 2 where admiment on me going to “off the highstreet” lenders, which had much higher interest rates and I wasn’t very keen, I have managed to obtain the best deal on my own surprisingly! Just fingers crossed it follows through, all I have is travel to work and nursery fees which my baby’s dad gives me half of each month - hopefully his contribution is considered!

Ok brilliant good to know, the only formal things I have fortunately is child care which varies each month, car tax and travel to work.. I do spend a lot on crap during my day at work but I suppose this is my choice on how to spend my “disposable income”?
Also.. they’ve asked for latest full months statement would this be May if I was to submit them tomorrow.. even though we are almost at the end of June?

Surely to out a offer in on a house your broker gave you an agreement in principle of what you can borrow based on your savings, income and outgoings?

Yes I have received an aip

Overdrafts are fine (in my experience!) - we were however advised to reduce our overdrafts over the first 2 years of our mortgage so that when we come to remortgage the bank can see that we are responsibly addressing our debt and not just living 'in the red', so to speak. As PP says, credit cards/products on finance are viewed more harshly.

Best of luck

My Application is now with the under writers and valuation is being done on Tuesday so fingers crossed..

Led to believe a valuation is a good sign however the mortgage company I have used issue valuations as soon as the application is submitted I think so not safe yet!