Applying for overdraft while buying a house.

Odette

Would this affect a mortgage decision? I don't need to use it yet/at all but I was just thinking it might be nice to have the option in the first couple of months as our spending regulates. Should I just wait until the day I get the keys?

Thanks.

Thrugelmir

Personally I would postpone the purchase if money is that tight. Save a few more pennies into the piggy bank.

Odette

I will put that as a vote for "wait untill you get your keys". Anyone else?

jacques_chirac

I'm with Thrugelmir, if you're going to need an overdraft so quickly, you're not in a position to be buying.

Moby_Tide

I'm the opposite. Having a pre-arranged overdraft can be seen as at least being financially aware and planning for certain eventualities.
I don't think it would affect your mortgage decision applying at the same time but I would exercise caution in over spending the first few months

Odette

As previous I don't need it but I might quite like it! Is there a yes/no answer to this that's not opinion?

Abu-Dina

Odette wrote: »

Would this affect a mortgage decision? I don't need to use it yet/at all but I was just thinking it might be nice to have the option in the first couple of months as our spending regulates. Should I just wait until the day I get the keys?

Thanks.

I asked a similar question a couple of months ago and was told to wait until we got the house keys. So it seems the general advice is to try and maintain the same credit information during the mortgage process.

You can always apply for the overdraft after you complete.

Good luck!

Dave_the_Ginger_Cat

Different lenders will have different policies, but let's face it - it doesn't look good, does it?

Odette

Ok all. Thanks for the response. We don't have any OD or debt at all (yet!) but I'll wait till completion to look into it again anyhow.

kingstreet

Standard answer is do not apply for any new credit from the point of making a mortgage application until after completion takes place.

A search or a change in your credit situation can be picked up and see an "accept" become a "decline" if you are re-scored for any reason. A routine audit, for example, could pick this up.

amnblog

No No No - leave your credit file alone while buying a house with a mortgage