Applying for Mortgage, but been overdrawn in previous months

[mortgage]

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

 

[corkmike]

Hi,
Mortgage applications are based on a number of factors - proven track record of savings - paying off credit cards. Above all ability to repay. The stability of your job is also important. Many banks are now looking for 20% deposits - look at the reason for this - I was in a bank recently and the reason they wanted a 20% deposit is that they see the prices still to fall further. Look at your long term goals. Are you planning on having children - how will you manage the extra cost. Also if one of you lost a job, how would you manage the mortgage repayments. Also will this house suit your future needs - if you buy now and the price goes down it could leave you living in a house for a number of years.
Regards,
Mike

 

[Asbo25]

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

AIB declined my mortgage application because I was in and out of my mortgage all the time. I bank with them, so they could see all of my colourful history. I was over the overdraft limit a couple of times.. So basically I was using an unauthorised overdraft from time to time.
The reason on the refusal form was "unsatisfactory operation of accounts."
If you are within the limit of the overdraft, I can't see any reason why they would refuse you. I got a mortgage off a different lender in the end. And this was 5 months ago.

 

[kazana]

Refused by BOI. Reason given was occasional use of overdraft facility (savings were being paid to fixed term account) not an issue with AIB.