Overdraft Declined:

desertstorm

So this is the situation. I've just been offered a mortgage and this morning I tried to extend my Natwest account (Currently has £2000 overdraft available but is in £3000 credit) but it was declined.

What are the possible reasons behind it? It surely can't be a bad credit score if I have just been approved a mortgage. Could it be that at least 3 credit checks have taken place in the last month in regards to mortgages?

Is it worth me attempting to extend the OD of another bank account? I don't want it affecting my credit score if I can declined again.

Many thanks

JuicyJesus

desertstorm wrote: »

So this is the situation. I've just been offered a mortgage and this morning I tried to extend my Natwest account (Currently has £2000 overdraft available but is in £3000 credit) but it was declined.

What are the possible reasons behind it? It surely can't be a bad credit score if I have just been approved a mortgage. Could it be that at least 3 credit checks have taken place in the last month in regards to mortgages?

Is it worth me attempting to extend the OD of another bank account? I don't want it affecting my credit score if I can declined again.

Many thanks

Why do you need a larger overdraft if you're £3000 in credit and have a £2000 overdraft you don't use?!

boo_star

desertstorm wrote: »

So this is the situation. I've just been offered a mortgage and this morning I tried to extend my Natwest account (Currently has £2000 overdraft available but is in £3000 credit) but it was declined.

What are the possible reasons behind it? It surely can't be a bad credit score if I have just been approved a mortgage. Could it be that at least 3 credit checks have taken place in the last month in regards to mortgages?

Is it worth me attempting to extend the OD of another bank account? I don't want it affecting my credit score if I can declined again.

Many thanks

One is unsecured lending, one is secured.

The criteria as a result is different.

£2000 is a fairly high limit anyway, I expect the bank (wisely IMO) do not want to increase their exposure.

You can apply to other banks but they may well score you negatively for multiple applications.

CLAPTON

be careful,
the mortgage company may do a final credit check just before giving the money and may not like any additional lending (it looks a bit suspicious which it probably is)

opinions4u

This is absolutely NOT the time to be trying to increase you overdraft limit.

Wait until you've moved house and then look in to it.

(£2k is already a large limit, so while multiple searches etc could be a reason for the decline, it is also more than possible that they think £2k is enough for you).

Why do you actually need a bigger overdraft, and how would you repay it?

KingElvis

I can't figure out why you'd want to do this anyway?

darkblue_2

lenders take a lot of information in when they assess a decision. It may be that they see you have other forms of credit and don't want to overburden you with more credit. It's not as sympathetic as it sounds; it's purely a matter of risk v reward.