Mortgage Query

chrislad

I'm applying for a mortgage with my girlfriend. We were given a quote of 289,000. Obviously, now we need to put up bank statements etc which is all well and good.

My main concern is that our spending has been a bit frivolous over the last few months as we knew we were going to be applying for a mortgage and we were basically going to just enjoy things as they were. Now, do banks look at the statement as how you spend your money or just as proof of your monthly outgoings (eircom, ESB etc), which I don't have much of (total is probably about 400inc a month, 235 of which is a car loan which is finished next month). The main reason I ask is that I have an overdraft facilty that I pretty much went into every month as we went away for a bit and just got a new TV. My wages are 2500+ a month and the overdraft has a maximum of 1200, the most it's gone to is 1000, and it's obviously paid off every month. I won't be going near it this month, but it's still a concern. Payments they are quoting us are 1500 or so a month, which is affordable and we have no intention of living the way we have for the last year or so, so any reassurance/damning would be appreciated.

Thanking you in advance.

Mortmain

The overdraft situation shouldn't be an issue, generally they just want to see proof of income and make sure that no Direct Debits have gone bouncy bouncy

BuffyBot

What Mortmain said. Mostly it's just to prove you have the money coming in that you claimed you had, and nothing is too amiss.

chrislad

That's reassuring. Thanks guys.

unclebill98

One question you might get asked is...

If you get x amount p/m and have nothing left, then where are you going to cut back to afford the mortgage?

Not so much to catch you out more of a question to make you understand what your getting into. Also, and overdraft is not for reg use and some underwriters will comment on that. I've seen it before, best to say you PLAN on not using it as much!

chrislad

This month, the overdraft won't be touched. I have all my answers ready, mainly about us knowing that we have extra responsibilities now plus since we'll be moving to your branch, we won't be availing of an overdraft facilty.

unclebill98

Well I hope everything goes smoothly. Its amazing that someones mortgage application can be harder than others depending if the underwriter had his coffee that morning!!!

chrislad

Would the overdraft situation be an issue with a 100% mortgage?

unclebill98

nah, like you said you should be using it as much now. Its usually just a question that gets asked. Which bank you going with?

chrislad

PTSB. They're offering the most. BoI only offered 220k, and Halifax only 215k.

unclebill98

chrislad wrote:

PTSB. They're offering the most. BoI only offered 220k, and Halifax only 215k.

Best of luck..

rickywog

PTSB wont ask for ur current acc statements so u should be fine, its not part of their underwriting critera so dont offer them!!!

IIB have just changed policy so they are now looking for them. BOS/Halifax always looked for them.

OneLife.ie

Disclosure - I work for a mortgage broker

There are a lot of variables when assessing the mortgage application.

The quote you've been offered unfortunately isn't worth the paper its written on. The true assessment will come on the submission of the application and supporting documentation.

If you are looking for a maximum amount and as a first time buyer they will look into servicability and request bank statements etc etc.

Some underwriters and lenders will be very sniffy about the fact that you need and overdraft to service your lifestyle when you currently aren't paying substantial rent or a mortgage.

However if your current statements only represent a temporary blip, then produce 6 or 12 months statements to support your arguement (as if you state to an underwriter that it was only temporary/recent - the logical question for them to ask is for to demonstrate the historic performance)


There are other Lenders out there that will/can offer the same or more than ptsb.

Fundamentally there shouldn't be a major issue with securing an approval - the true crunch will come at a maximum amount approved, and ensuring you secure the true maximum available to you.

chrislad

Totally forgot about this thread. We got our approval anyways for 289k. Not aiming to use that much but it's nice to have it.

unclebill98

Congrats!!!!