Do I have to close all my overdraft before applying mortgage?

cnuk

I have two credit cards, barclaycard with limit of £3530 and MBNA with limit of £3700. I also have three current accounts with overdraft facilities, total limit £1950. My credit cards have both good payment history for many years. My monthly credit card spending is between £500 and £800, very rarely goes over £1000. I dont know why I was given this high limit, and never thought it will affect me in any negative way. Overdraft facilities were suggested by the bank when opening account, but never been used. Since banks charge penalty fees if balance in red by accident and I don't have overdraft facilities, I kept it just in case.

I read the MSE mortgage guidance, which suggests close unused credit facilities. Do I have to cancel all overdraft facilites before applying for mortgage? I use both credit card for different purpose. do I have to close one or ask the lender to lower my limit?

Your help will be much appreciated!

Dave_Ham

From the sound of it do not worry..

Worst ways a lender may request it, although these are in the extreme minority...

Good luck with the process...!

cnuk

Dave_Ham wrote: »

From the sound of it do not worry..

Worst ways a lender may request it, although these are in the extreme minority...

Good luck with the process...!

Thanks. If this is a problem, does the lender reject the application straight away or would they simple just ask to cancel the credit access before approving the application?

Dave_Ham

They would simply ask the question. If you had loads of credit all round the place (which you have not by the way) they may just decline.

Honestly, you are worrying over nothing...

cnuk

Dave_Ham wrote: »

They would simply ask the question. If you had loads of credit all round the place (which you have not by the way) they may just decline.

Honestly, you are worrying over nothing...

Thanks a lot, Dave.

Thrugelmir

No harm in closing unused credit facilities and bank accounts.