Overdraft

Thehighlander_2

Hi All

Another question from myself. Could be a stupid one but maybe not.

Myself and my misses have an overdraft of £1500 and regualry come in and out of it each month, when we get paid we are fully out of it then we just go back and forth.

Is this seen as a negative point when trying for a mortgage?

See my other thread for details (it wouldnt let me post the link as I am a noob)

Thanks lads and lassies

Thrugelmir

Thehighlander wrote: »

Is this seen as a negative point when trying for a mortgage?

Yes it does, It will impact a lenders credit score of you both.

Thehighlander_2

Perfect, its our own fault as we put to much money into our savings every month....

Will get that sorted tomorrow.

GMS

Adding to 'savings' whilst borrowing money could be seen as counter productive. Better to have savings and no debts.

That said there is no way to prove credit worthiness other than to borrow so having any credit facility running and well maintained will help assuming it is not excessive.

Thehighlander_2

Thanks buddy.

CLAPTON

GMS wrote: »

Adding to 'savings' whilst borrowing money could be seen as counter productive. Better to have savings and no debts.

That said there is no way to prove credit worthiness other than to borrow so having any credit facility running and well maintained will help assuming it is not excessive.

well if you mean use a CC every month and pay in full then yes
if you mean use an overdraft every month then no