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going into arranged overdraft- worried
shakey999
Posts: 36 Forumite
My bank statements show me in -200 in the beginning, in arranged overdraft,then I get paid and don't go back under except once for -£20
My wife on the other hand has a massive limit and is seen going -500 in two different months. The problem is, this isn't a question of affordability, she has £3000 sitting in her savings for over a year. She just doesn't want to touch it as she has 0% overdraft limit.
We're ftb, offer accepted for 120k, 15% deposit. Our mortgage if accepted would work out less than the rent we pay. I have 2 latepayments on file, from 2011, 11's. Otherwise I'm fine. Her credit historyis spotless. We have Paid off all debts. Should we beconcerned
My wife on the other hand has a massive limit and is seen going -500 in two different months. The problem is, this isn't a question of affordability, she has £3000 sitting in her savings for over a year. She just doesn't want to touch it as she has 0% overdraft limit.
We're ftb, offer accepted for 120k, 15% deposit. Our mortgage if accepted would work out less than the rent we pay. I have 2 latepayments on file, from 2011, 11's. Otherwise I'm fine. Her credit historyis spotless. We have Paid off all debts. Should we beconcerned
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Comments
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Depends on lender. Some would have an issue, others wouldn't.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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Which lenders would be lenient, should I expect my broker to contact the lenders underwriter before applying?
Is it possible to explain to the lender that we had the means in a savings account and that the overdraft was 0%.0 -
"If you have an overdraft account, your bank will cover checks which would otherwise bounce. As with any loan, you pay interest on the outstanding balance of an overdraft loan. Often the interest on the loan is lower than credit cards."0
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Which lenders would be lenient, should I expect my broker to contact the lenders underwriter before applying?
Is it possible to explain to the lender that we had the means in a savings account and that the overdraft was 0%.
If a mortgage is your priority. Then maintaining an account in credit is the easiest thing to do. As the interest you'll earn on a few hundred pounds over a few months is nominal. So you are hardly losing out.0 -
The lenders may not even look at your overdrafts or bank statements, as I understand it, the higher "risk" you are (i.e. what your credit scoring is, your LTV, amount you are borrowing, affordability etcetc) the more proof they want that you're a good bet to lend to.
Don't know if the broker would contact the lender first but they'd be able to tell you what documents you need to provide.0 -
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