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

Hugbubble

CLAPTON wrote: »

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

You didn't, but by simply saying "bizarre" after quoting the OP, made me think you didn't agree with him/ her using the overdraft when (s)he had savings.

Hell, I'm confusing myself now

hazyjo

Are you paying any interest on your overdraft?

Jx

daisiegg

kiki* wrote: »

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.

Not necessarily...I was very surprised to be approved for a mortgage when I'm still in my overdraft. It's a joint mortgage with my partner, though, and his financial situation is delightfully healthy so that's probably why.

Most student overdrafts are interest free. I went into a graduate account a year ago, and have had an interest free overdraft of £1500 for a year, and now it is going down to £1000 interest free for the next year. Over the past year I have been gradually reducing my overdraft - gone from not even getting out of on payday each month, to only being £100 or £200 into it by the end of the month.

I have to say, though, I don't like it and I think if I had the savings to just pay it off, I would!

OP, I suspect you will be ok, if you show them your savings account and also the fact that your overdraft is interest free. I suppose you probably should also let them know when you lose that interest free overdraft allowance, because it doesn't last forever!

lou_parker

so do you think I should say i also include a copy of my savings to illustrate that although im in my overdraft, should the bank make any changes and wish me to pay it back it will not affect my rent as i have sufficient savings?

lou_parker

oh and yea it's an interest free student overdraft

daisiegg

lou_parker wrote: »

so do you think I should say i also include a copy of my savings to illustrate that although im in my overdraft, should the bank make any changes and wish me to pay it back it will not affect my rent as i have sufficient savings?

I think so...

hazyjo

Student loans don't seem to usually affect mortgage applications, so I don't see why it would make a difference to a rental. Do you have something to say it's a student debt, or does it just show as O/D on your account? Is there a student statement or something of the loan/overdraft? I'd show that rather than savings, I think.

Jx

kiki*_2

Student loan will make no difference but if it's an actual overdraft then it might.

daisiegg

It's not a student loan, the OP has stated very clearly it's an interest-free overdraft. Nothing to do with student loans.

hazyjo

Thanks, I got that from kiki*'s post. Had actually realised that anyway, but thought if there was something to say the debt was from their time as a student, and interest free, it shouldn't make a difference to renting somewhere. Worded badly as was comparing alongside a loan.

Jx