Effect of unauthorised overdraft on FTB mortgage?

Jemster01

Hello, long term lurker, first time poster, please be kind! I can find advice on the effects of defaults, DRO's etc but not unauthorised overdrafts so thought I'd start a new thread with my question.

Me and partner are FTBs, looking to buy a house worth £135K, with a deposit of £50K, so will be seeking a mortgage for £85K, at 75% LTV.

I earn £27,500 and my partner earns £22,000. I have a good credit rating, no debt. He has £2.5K on a credit card and recently finished paying off a £3K loan. However his credit rating is showing late payments on his currrent account, which according to HSBC are from going over the authorised overdraft when a direct debit has been taken. His account is normally in credit, and only goes overdrawn for a short amount of time. There are ones showing in March and April this year, another 2 last year, and 2 the year before.

There are no late payments or defaults recorded on the credit card or loan.

Does anyone know what lenders think about unauthorised overdrafts? I know they will adversely affect our mortgage application, but could they cause us to be turned down from most lenders? Or is it likely we will still be accepted, albeit with a not so favourable rate, given LTV and that it is a small loan compared to our joint income?

Many thanks for your help, I did think we would be ok applying for a mortgage given the LTV and amount but now I'm worrying!

Thrugelmir

If you have £50k deposit why is the current account account going overdrawn?

The way one manages ones own personal financial affairs is a good indicator as to character.

Jemster01

My partner is very disorganised! The deposit is coming from his parents.