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[email protected] overdraft use against my mortgage


I have a Alliance and Leicester £1500 overdraft (FREE)

Last year the £1500 went into a ISA Fixed for 1 year 6%

At the end of this month my ISA finishes and my free overdraft finishes

So next month if i leave the money in a ISA (2.5%) i will make £3.12 per month
BUT i will be charged £5 per month for having a overdraft

So my Questions is

Do i put the £1500 into my mortgage (over pay) Currently 6% fix until Sept and roughly how much will i save per month?(it needs to be more then £5)

Will the £1500 overdraft have an effect on getting a new mortgage?

I have no debts-pay all my credit cards off monthly

Mortgage £95k
Term 18 years
75% LTV

Would appreciate so advise please



  • dimbo61dimbo61 Forumite
    13.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The savings if any will be tiny so better to clear the overdraft and just have your mortgage when you start looking for new deals in sept.
    Lots of good 5 year fixes available IF ? you have good LTV
    A&L 3.99% LTV 65% 5 year fix with NO FEES
    abbey/hsbc 3.95/3.99 5 year fix fee £999 60% LTV
    Post office 4.15% 5 year fix fee £799 75% LTV
    long term security and chance to overpay on most deals
    Please check carefully all the T&C,s
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