Banks Statements & Reserve Fee

opinions4u

gilly33 wrote: »

I have an agreed overdraft facility of £1,000 and then I also have an agreed reserve for £1,000. I didn't use all of it just dipped in buy paid it back within 5 days which is the time you have to do so.

I'm assuming this is Barclays Personal Reserve.

An underwriter may interpret this as an unauthorised overdraft, even though Barclays state "Personal Reserve is a service that gives you an extra agreed amount you can use if you occasionally need to go overdrawn or exceed your arranged overdraft limit".

My own view is that it's a hideously expensive way to borrow short term, you're mad to use it and Barclays are doing very well out of it. But it is agreed borrowing. You might need to educate the underwriter further down the line.

I'd also suggest managing your finances better in future.

gilly33

Well I hadn't even noticed I'd gone into it until I notice the charge on this months statement. So my question is this enough to get my buy to let mortgage application turned down even though this month is showing really healthy?

opinions4u

gilly33 wrote: »

Well I hadn't even noticed I'd gone into it until I notice the charge on this months statement. So my question is this enough to get my buy to let mortgage application turned down even though this month is showing really healthy?

On it's own, I wouldn't have thought so.

But alongside other factors, yes.

(The fact you hadn't noticed indicates that you're not totally on top of your finances - I wouldn't use a similar phrase if the lender does contact you for an explanation!)