living off overdraft-will this prevent me getting a flat?

lou_parker

Basically I left uni a year ago and have been overdrawn for the last 4 years, awful I know! ive seen a lovely flat but they want to see bank statements , i think they r quite strict on refs because the people who wanted the flat before didn't get it because their references weren't good enough...is the fact that im overdrawn going to stop me getting this flat, I definitely earn enough money to pay-really stressing me out!

Lokolo

Yes it might. Banks can withdraw overdrafts at anytime. If you end up without the overdraft and owe the bank X amount - how will you pay your rent?

[Deleted User]

If you can afford to pay the rent.., why haven't you reduced your over draft? I am sorry to sound harsh. Paying rent is first priority but surely its a good idea to also put a high priority on reducing your debt load once you are earning rather than move to another flat which will undoubtedly have a cost implication?

If you haven't been able to reduce your overdraft by a considerable amount by now, surely it would be a good idea to look at budgeting further? It sounds to me like you are living beyond your means if you haven't already done this and I'd be looking at fixing that first before thinking about moving. You will need to at least pay out a deposit in advance of getting back the deposit on your present place surely?

emmatthews

The overdraft may well have been reduced, we don't know how much it was and how much it now is. The OP could also be paying more in current rent than that new flat is costing?

So, without making assumptions, I would say the following.

If you are not making any inroads into your overdraft amount and if your outgoings are set to increase if you get this property, then it may not be the wisest commintment to take on.

However, if you are running your overdraft within it's limits and have a good credit history other than that, then I don't see why it has to be a problem. Whilst some overdrafts appear on credit reports, the agent won't see your historical & current account balances. They will just get a negative response overall if you have overlimit/late/defaulted payments on any credit commitment.

lou_parker

i have a lot of savings so I can pay back the overdraft at any time

lou_parker

i just haven't used savings cuz the intention is to pay it off with my earnings, as for moving i have to because the commute isn't possible, the grad scheme I got on is brilliant and i wasn't willing to turn down the opportunity because of the commute

kiki*_2

Show them your bank account but also your savings account. Then they will hopefully see that you can afford it. You'll need to have a clear bank account when you want to buy though.

CLAPTON

have been overdrawn for the last 4 years

awful I know!

really stressing me out!


i have a lot of savings so I can pay back the overdraft at any time

bizarre

Hugbubble

CLAPTON wrote: »

have been overdrawn for the last 4 years

awful I know!

really stressing me out!


i have a lot of savings so I can pay back the overdraft at any time

bizarre

But most student overdrafts are interest free, so actually this makes sense to not pay it off

Wobblydeb

It is not unusual for students to graduate with a large overdraft that may take several years to repay. Most banks will have a scheme in place to either replace the overdraft with a loan, or gradually reduce the balance.

They key question for you is whether the overdraft is either free, or costing you less than your savings can make?

If not, then use your savings to pay off the overdraft.

CLAPTON

Hugbubble wrote: »

But most student overdrafts are interest free, so actually this makes sense to not pay it off

I made no comment about whether or not it made (financial) sense.