How will my overdraft situation be viewed by lenders?

ferry

Following a period of unemployment earlier this year I ate well into my agreed OD facility and am only now able to try and reduce this as I'm back in work.
Our fixed deal with Nationwide ends in Jan but on paper I am always 2/3rds into the agreed overdraft.I will mention that I have never gone over my agreed overdraft limit.
It gets temporarily cleared each month as my wages goes in but how is this looked upon by any potential lenders?

Thanks as usual
F

Thrugelmir

Worth checking the interest rate you move onto when the fixed term ends. By remaining on the SVR you will have an opportunity to clear your overdraft permanently.

ferry

Yes,to be honest that quietly is the plan.

Cant be sure of course what the SVR will be with Nationwide come remortgage time but I'm currently on 4.79% fixed.

Dont want to start a new thread but I also have a credit card debt to cover too but my plan is to wipe this out too and be able to overpay to bring the mortgage down quicker.
If I do this I should still end up with 48% LTV which I hope will help when considering a new deal from the lenders point of view.

I know consolidating is generally frowned upon but I cant see a way of clearing the debt any quicker.
Does this sound like a plan?

Thanks for the ongoing advice
F

Meeper

It is likely that your rate with Nationwide will go to Base + 2% for the remainder of the term, which will give you a current pay rate of 2.5%. They changed their offering from that to a "Base Mortgage Rate" of 3.5% about 20-odd months ago. You might just have scraped in on the old offering of Base + 2% guaranteed for the remainder of the term.

Thrugelmir

Sounds as if your tackling your debts the right way.

If you go onto the BMR of 2.5%. Then you may it may find it better to overpay the mortgage than fix or switch lenders.

ferry

Excellent advice as usual.

Thanks