Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Mortgage Approval Query

Options
  • 04-10-2020 9:15pm
    #1
    shreko
    Registered Users Posts: 69 ✭✭


    Hi there,

    Hope someone might be able to provide some insight on this ....

    We are in the process of applying for a mortgage and so far everything seems to be looking like we will be approved.

    However when reviewing my 6 months current acc statements I noticed a few minus's. So for example a Direct Debit went out and I didn't have the money in the account to pay for it but then transferred the money a few hours later. So the account was minus for a few hours. None of the DD's were ever returned and there are no missed DD charges.

    Do you think this will go against us? Or does the fact that in each case (4 scenarios) the direct debit was still paid and no charges incurred mean it will be overlooked ?
    Tagged:


Comments

  • Options
    #2
    coylemj
    Registered Users Posts: 25,362 ✭✭✭✭coylemj


    Your bank could have authorised an overdraft facility i.e allowed you to go into negative territory up to a set limit. Any third party looking at your statements is going to give you the benefit of the doubt so unless you’re consistently overdrawn, it won’t concern a prospective lender. It’s not a crime to be in the red.


  • Options
    #3
    L-M
    Registered Users Posts: 23,694 ✭✭✭✭L-M


    If you’re currently paying rent of 500 and your mortgage is going to be 800 for example, then no, it’s not good.

    If you’re currently paying rent of 500 plus saving 1000 and looking for a mortgage of 800 then it should be ok.

    It’s not great in any loan application though.


  • Options
    #4
    shreko
    Registered Users Posts: 69 ✭✭shreko


    We are currently paying rent of €600 and saving €1700 so have repayment ability of €2300 and new mortgage will only be €1100 so no issues there.

    Combined salary let’s us borrow over €450000 but we are only looking for €300000.

    So it all looks good on paper and she said she doesn’t see any issue so far. She just needs to go through all our paperwork.
    It was only over the weekend I noticed the minus’s and felt sick at the thought we might not get approval based on this so hopefully it won’t be an issue. I guess I’ll know one way or another this week anyway. Thanks!


  • Options
    #5
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Op I don't see any real issue here, I'm presuming that after going into overdraft that you were not charged a referral fee? Lenders look out for unpaid direct debits and referral fees. An odd one now and again would not be
    a huge issue and could also be explained by you over saving i.e €1700 pm when your stress tested repayments would be €1100. I really don't think you have anything to worry about.
    shreko wrote: »
    We are currently paying rent of €600 and saving €1700 so have repayment ability of €2300 and new mortgage will only be €1100 so no issues there.

    Combined salary let’s us borrow over €450000 but we are only looking for €300000.

    So it all looks good on paper and she said she doesn’t see any issue so far. She just needs to go through all our paperwork.
    It was only over the weekend I noticed the minus’s and felt sick at the thought we might not get approval based on this so hopefully it won’t be an issue. I guess I’ll know one way or another this week anyway. Thanks!


  • Options
    #6
    shreko
    Registered Users Posts: 69 ✭✭shreko


    Yep no referral fees or missed direct debits so hopefully it won’t be an issue. It’s just I don’t have an overdraft arrangement with them so technically I shouldn’t be in minus at all. But as I said it seems to only have ever been for a number of hours and then I transferred money to bring it back to normal.

    It’s just so difficult to get a mortgage at the moment so I’m nervous of any little things which might give them a reason to say now. Thanks for the reassurance. Hopefully the bank will be of a similar opinion!


  • Advertisement
  • Options
    #7
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Don't worry you will be fine, the fact that the account was brought into credit on the same day is a plus. Referral fees are red flags and your monthly savings are a big plus.
    shreko wrote: »
    Yep no referral fees or missed direct debits so hopefully it won’t be an issue. It’s just I don’t have an overdraft arrangement with them so technically I shouldn’t be in minus at all. But as I said it seems to only have ever been for a number of hours and then I transferred money to bring it back to normal.

    It’s just so difficult to get a mortgage at the moment so I’m nervous of any little things which might give them a reason to say now. Thanks for the reassurance. Hopefully the bank will be of a similar opinion!


  • Options
    #8
    coylemj
    Registered Users Posts: 25,362 ✭✭✭✭coylemj


    shreko wrote: »
    Yep no referral fees or missed direct debits so hopefully it won’t be an issue. It’s just I don’t have an overdraft arrangement with them so technically I shouldn’t be in minus at all. But as I said it seems to only have ever been for a number of hours and then I transferred money to bring it back to normal.

    I have found Bank of Ireland quite flexible in that regard. For a longstanding customer, they'd pay a direct debit, even if it put you into the red without an overdraft authorisation. As long as you didn't have another consecutive debit i.e. the next transaction put you back into the black. And they didn't levy you a charge for an unauthorised overdraft.

    When I'd check my next statement, I'd find that they had reversed the timestamps on the DD and the follow-on credit lodgement so it looked like I was never in the red.


Advertisement