Sorry to hear that. Surely, it will be any day now ...
I'm curious what the bank/lender will look at when deciding whether to give or not give a mortgage. Even though we have the decision in principle, I'm worried that the bank will decide not to give us a mortgage.
I mean, it's certainly possible that they'd decide against it, regardless of a mortgage in principle. There's all sorts of factors, many of which I'm sure I'm not aware of. Some that I do know of, though;
- They run a thorough credit check, so any unpaid bills/bad credit could flag stuff up.
- Payday loans will show, and could negatively affect things, even if they were paid back on time.
- If you have any credit cards/overdrafts/student debts/loans, that can have a negative impact too
- Even silly things like having multiple close-together credit checks can look suspicious
- They might decide your incomings/outgoings don't allow you to make sufficient payments
- They might decide that your employment isn't stable enough (self-employed, not been in the job long enough, etc.)
- They'll take into account any (human) dependents, and the impact they will have on finances
- They also take into account age and health, to ensure you'll be alive and earning money long enough to make the payments
And, even if all that comes back clear, they might still decide that the property isn't worth what you've offered for it, and therefore won't secure you a mortgage on it.
Hooray for capitalism!
Even if you've got some dodgy financial points, though, it doesn't necessarily mean you won't get a mortgage. Best thing to do, if you have any worries about your finances, is speak to a broker and disclose everything. They should be able to advise you on which lenders are likely to lend you money. It's also advisable to try and sort out your finances as much as possible long before making an application - pay off debts if you can, ensure you have 3 months of bank statements that are in the black without fines/charges, etc.
(I realise you didn't ask for a massive wall of text, but typing this out was a little cathartic for my mortgage-based nerves)
due to overdrafts on my debit card.
