Graduate overdraft affect mortgage applications

TomSaunderson

Hi,

I graduated a year ago and have a standard 2k overdraft with my Natwest Graduate account with the interest free portion reducing over 3 years.
I have been maxing out the interest free part of this by carefully budgeting so that I can maximise the amount I save in an ISA and hence benefit from the interest on that.

Now my question is, before I apply for a mortgage do I need to come out of my overdraft? Is it going to have a negative impact on my application? I understand that consistent use of overdraft's can be seen as poor money management, but in my case this is in fact the opposite as each month I take a chunk out of my account to put into an ISA.

Thanks in advance,
Tom

jafer2

No having a student loan in no way effects you getting a mortgage. I know as I asked a halifax mortgage advisor before I applied. He said that doesnt come into consideration and same goes for a student bank account. The main thing is you have never or recently gone over the agreed overdraft limit youll be just fine

MrsHappy85

I have an overdraft limit of £1100 that I use frequently but clear it every month with salary going in, I was told by our adviser that as long as the overdraft was well managed, we didnt go over our limit (we dont), then all would be well. We got a mortgage with Halifax with 10% deposit and moved into our new house two weeks ago :-)

Im still using my overdraft!

Best of luck

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