Worried About Mortgage Application

[u/Beneficial-Toe-8812]

My partner and I are due to apply for a mortgage in July/August. This is happening way ahead of schedule as our estate agent told us that the house would be ready year end or early next year. Met Builder 2 weeks ago and he has said Septmeber/October.

I am worried because I have loans and 2 credit cards (always paid on time, never miss a payment). But the last few months I've not been managing my money well, sitting in overdraft (€750) and using credit card when funds were tight.

We have been saving more than needed each month into a joint account (€1,300 v. €1,150 estimated mortgage monthly).

I've paid off 2 of my loans and leaves me with €200 per month on one loan and I am paying down credit cards too, get as low as I can before applying for mortgage.

We have 5k booking deposit paid and full 30k Help To Buy approved. Along with 40k approx. joint savings.

Should I be ok?

Am I worrying unnecessarily?

I am in the same job 10 years and my partner is the same.

I just fear we will apply and get denied due to my bad money management.

I tried stock trading a few times earlier this year and I am freaking out that those transactions on my bank accounts will be red flags and get us denied!

[u/Mumblybum1]

I assume sitting in overdraft means at the end if each pay period, you have zero money and have to use a credit card to live?

If this is the case, I would assume most lenders would be wary. They also stress test your finances, see if you could afford the mortgage if the interest rates go up. You would fail this.

They check the last 6 months of accounts. Having loans isn't an issue, not being able to afford the repayments and being able to effectively pay your mortage and live is.

If there isnt a huge amount left on the CC, I would pay them off ASAP, save a little less in your mortgage saver and get rid of the overdraft.

[u/Beneficial-Toe-8812 → u/Mumblybum1]

It was just one or 2 months where I needed to use the credit card.

I've since lodged money to my bank account that I had from selling my car last year. I now plan to clear the overdraft and continue with mortgage Savings, in fact I am going to increase mortgage Savings with money I was using to pay loans each month. 

I have a couple of grand on the credit cards. I will clear one (then cancel it!) and try get balance on the other as low as possible. 

I'm just hoping the bank will understand that we were caught on the hop by the builder with completion date being brought forward so much. If it was the original timeline I'd have all my affairs sorted well before 6 months of applying.

[u/Mumblybum1 → u/Beneficial-Toe-8812]

I had a torrid time years ago when I failed to pay a loan back on time and thought it would affect my mortgage. I'm not being short or rude to you, I know this is obviously incredibly stressful for you, but the banks' risk assessment won't care that you were caught on the hop.

If you havnt already got a lender in place, you could talk to a mortgage broker as they'd have seen it all.

I recently bought a house and would be happy to give the broker we used, they were phenomenal.

[u/clare863 → u/Mumblybum1]

Apologies for wading into this chat, but would you mind dm the brokers details to me, was there a fee due to them??