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Does an authorised overdraft affect a mortgage application ?
lrlrip
Posts: 590 Forumite
DD and her BF have a mortgage in principal from the Nationwide, survey is being carried out this week and full application for mortgage sent in Friday. DD is now worrying that her authorised overdraft will affect this decision.
Does anyone know thanks?
Does anyone know thanks?
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Comments
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The agreement in principle should have covered such an issue at that stage. Who is providing the overdraft facility?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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kingstreet wrote: »The agreement in principle should have covered such an issue at that stage. Who is providing the overdraft facility?
Her overdraft is with the Royal Bank of Scotland0 -
I can't see it being an issue if it wasn't at the AIP stage.
It seems only Yorkshire BS has an issue with lines of "unborrowed" credit at this time and may reduce mortgage borrowing power by an equivalent amount.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »I can't see it being an issue if it wasn't at the AIP stage.
It seems only Yorkshire BS has an issue with lines of "unborrowed" credit at this time and may reduce mortgage borrowing power by an equivalent amount.
Thank you, she is stressing BIG time, just hope it does not take too long as I can't cope with all her questions lol0 -
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Thrugelmir wrote: »Is it utilised very often?
Yes all the time. She has just been gifted money so should she clear it or is it too late if they check?0 -
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I am just going through the mortgage process with a broker at the moment and I have similar concerns. He advised me that it is only overdrafts that are used on a regular basis (like mine!) that cause problems and then only with certain lenders (as has been said before).
One of my options was with Nationwide for a fixed rate deal and he advised me not to go with them as they have a "history of declining lenders based on what they see to be excessive overdraft usage".
I also enquired about clearing the overdraft off, but he advised that it would not show up on my credit file quickly enough to be of any use.
Sorry to put a downer on things
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What size of overdraft are we talking about here? I have a £100 facility on my account which I dip into for a couple of days a month. Would that have an impact?0
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