Mortgage whilst overdrawn

furi0usd

Hi all,

apologies if this is a very generic question...

My partner and I are in the process of applying to mortgage broker for a mortgage on a flat that we like.

Unfortunately, this happens to have occurred at a time when the joint rent has just gone out of my account and I'm overdrawn by about £900. In about 2 weeks time my wage will land and even accounting for any extra spending between now and then, my overdraft will almost certainly be cleared.

I and my partner are extremely concerned that my current financial state will mean we won't get a suitable mortgage offer and we'll have to abandon the whole thing.

Can anyone suggest whether a state of being 'temporarily' overdrawn i likely to make a difference, if I can demonstrate that I'll be in credit again in a couple of weeks (which I can, as they're receiving bank statements from the last 3 months)?

I should also say that there are no issues with my credit rating and that for the last couple of months the situation of going overdrawn and then coming out again has been the norm.

Cheers

Glasgow_Al

It could indicate an affordability issue. If you current account provider withdrew your overdraft facility, how would you be able to make payments?

furi0usd

Well, I couldn't, but it's an authorised overdraft and my incursions into it have been diminishing over the last few months.

My partner has no such issues.

Thrugelmir

Why not use your savings to clear your overdraft?

furi0usd

Personally I have no savings at the moment, otherwise I would - deposit is coming from my partner's side.

ACG

Will your mortgage be less than the rent?

Hoe much is the deposit? how much is the purchase?

Thrugelmir

furi0usd wrote: »

Personally I have no savings at the moment, otherwise I would - deposit is coming from my partner's side.

May flag up affordability issues then.

furi0usd

@ACG

Yes, every mortgage permutation we've considered will be less than the rent.

Deposit will be approx 43-44k, purchase price is 206k.

johnhill

I have been regularly in my overdraft for the past few months, up to a few thousand - only recently came out of it when i received a bonus for my deposit in December. We have just had a mortgage offer so it hasn't caused me any issues. I was worried my self but seems ok.

Thrugelmir

furi0usd wrote: »

Yes, every mortgage permutation we've considered will be less than the rent.

With property ownership comes other costs. Those previously absorbed by your Landlord. So worth allowing yourselves sufficent income to cover these.