disclosure of use of overdraft

jabba21

Hi, we are looking to borrow nearly 300k at 95% LTV. At the end of Nov we'd been credit checked & an agreement in principle offered. We had to show that our personal account bank statements (the ones our respective wages go into) had not used any overdraft facility in the last 3 months, which they hadn't. We then paid our application and survey fee.

The adviser then noticed that there was very little activity on our personal accounts, we told him we use a joint "house" account to pay rent, food, bills etc. They now want to see 3 months bank statements for this account, fine except that if I go back to the date we applied (end of Nov), then we DID use £14 of an AUTHORISED overdraft for two days at the end of August. If I were to give 3 months statements from TODAY then this does not show the overdraft usage.

My question is, do i disclose this in the interests of honesty and risk having our offer withdrawn (no other lender will offer enough to get the house we have offered on) - OR - keep schtum, give them the info from today and hope they don't pick up on the overdraft usage in a final credit check between exchange & completion. Logic says if they did not pick up the dip into the overdraft during the credit check, then it won't be picked up during a "just before release of funds" check either?

You may think i am paranoid but i have heard many lenders have a "no overdraft in 3 months" red line to their lending criteria - a last minute withdrawal of offer & loss of deposit would cost us years of savings and possibly lose the chance of ever owning a home (I am in my late forties so the mortgage repayment years are ticking away).

thanks for looking.

MrsHappy85

I doubt very much that going into your overdraft by £14 for a matter of days will have a ngative impact. You are worrying too much!

My husband and I bought a house a few months ago, with a 10% deposit, and we both use our overdrafts frequenty.

Goodluck

ACG

Using £14 of an overdraft once in 3 months is unlikely to make any difference, but give them 3 months from today. Otherwise they will say they want this months statement if they dont get it.

jabba21

thanks for the replies, us 5% deposit kids seem to get the naughty treatment from mortgage lenders! I am all for responsible lending, but....

have a great christmas.

ethank

jabba21 - lenders are like this with everyone.

Goldiegirl

It was an authorised overdraft, so I really don't think there'd be any problem - I think you might be over anxious