Mortgage application, but have been overdrawn

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mortgage

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My wife and I are looking to purchase a home (1st time buyers).We've saved for a deposit and split our savings between our bank and our credit union. At the same time, we've had an overdraft facility and have been using it (now removed) Our combined income is 70k/50k=120k not including bonuses, insurance and both making steady 8% pension contributions. We have no outstanding loans and tend to pay for things upfront or Credit Card purchases settled by the end of the month (reduced CC credit availability to a nominal figure). The thing that worries me the most is that our bank statements would show fairly consistent use of the overdraft facility. Although they offered the service, I paid for the service, will they stab me in the back if I look for a mortgage? I'd be looking for LTV 92% and a mortgage around 250-300k, The bank mortgage calculators still say 550k with our earnings, although I’m very aware this is nothing much to go by
 
Once your not going over your overdraft and ref fee is not on your statement you should be ok
 
If they do not like the look of your application as a whole then they may use the overdraft as a reason not to approve you. If the rest of your application is strong then they should overlook the overdraft.

If you have consistent savings yet are overdrawn, you should be fine. The banks worry when an applicant is living from pay cheque to pay cheque (even if on a large salary) without saving each month.

The most important is to prove repayment capacity i.e are your projected repayments stress tested at say 6% being covered by a combination of rent and/or savings?

[broken link removed]
 
Are your savings not a bit low for someone on your combined income? Or am I reading your figures incorrectly? ie if you're looking for 92% LTV with a mortgage of 300k then your contribution to the purchase is only 24k (obviously you'll have other moneys for legal fees/furnishings etc) but I would think the banks would look more favourably if you were looking for less than the max LTV.
 
It’s a fair point although not to my topic point, but the answer is a simple one, the combined income has only been at that level for two years. I think it’s a fair amount of savings in that timeframe
 
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