Query on overdraft

olliesmum

Hi, my fixed rate is finished in December, however I was wondering if when making a new application my overdraft is taken into account and if it is, how much weight it has compared to loans etc? Obviously it's mostly just loans the mortgage calculators ask about and I wondered if I should include the overdraft amount when they ask about this. (I never had an overdraft the last time I applied for a mortgage and the market was much more lenient) The only reason I've not already applied for the remortgage is that I'm waiting to be put onto a full time contract, which is iminent and obviously makes things look much better from the income point of view as I'm just part time just now. Also, I live in Edinburgh and had heard that the whole negative equity thing isn't as bad here. Does anyone have any experience of this or are the probs just the same as everywhere else? Hope someone can answer my question

babirusa_rose

Only need to declare if specifically asked about overdrafts, in which case you must declare. Do not need to put outstanding overdraft amount in loans box. Reason that overdrafts are viewed more leniently is that they are not a a fixed monthly payment. Agt the bank I work for, we do not ask about outstanding overdrafts.

dimbo61

Can you work at reducing or even clearing this overdraft by december ?
Your mortgage rate and therefore mortgage payments will more than likely
go up in december so having an expensive OD as well as higher mortgage costs might cause problrems next year.
Have a happy but cheap xmas !!

olliesmum

We are working at reducing the overdraft, but it won't be cleared by December. I'm really looking forward to it being gone though!