Mortgage Application and Use of Overdraft

dkb

ViolaLass wrote: »

If you have savings, then surely this could be avoided and I find it bizarre that your partner went into her overdraft to lend someone money rather than use her savings.

Overdraft was free, the ISA was accruing interest.

dkb

GMS wrote: »

You may find that the application will be scrutinised by the underwriters. The obvious question is why is the overdaft being used when savings are there. May well want to see evidence of the savings being built up as it may look like a lump sum deposit due to overdraft being used.

It is difficult now when applying for a mortgage. You are told that you need to demonstrate good credit conduct of which using an overdraft responsibly is doing, but then get questioned for actually being overdrawn!! Can't win.

I'm ringing the underwriters on Monday to get clarification on whether or not this is likely to be declined. If so then at least I know not to proceed, saving any valuation and booking fees.