Applying to Yorkshire BS or HSBC - will overdraft usage mean no?

bluep

Both my husband and I have used our authorised overdrafts in our current account regularly, despite having savings in other accounts - I know...real financial laziness which I am now regretting. I think he has gone into his unauthorised OD by £10 once a couple of years ago due to payments in not clearing in time. My current bank HSBC said this wouldn't be an issue for them (we have lovely shiny credit ratings, no defaults, never get turned down for anything and both have pretty high salaries in the 40% tax bracket).

However, Yorkshire BS's rates are more than 0.8% better for the particular LTV and fixed rate that we want. I was originally swayed towards HSBC as our last mortgage was with them and they've known me as a customer for 18 years so have a full financial history. I'm no longer sure that this is worth the gap in rates!! Plus the LTV with Yorkshire is 75% to qualify for the rate whereas HSBC is 70% so we'd have to put a great deposit down.

Has anyone else experience of applying to Yorkshire BS and whether this overdraft usage would be a problem?

FreezingWarm

I've just applied and had my offer- we were in a similar situation, and forced an OD as we had fixed amounts going into savings. (Hindsight is a great thing!)

YBS asked for an explanation to be submitted to the underwriter, and approved it. I was nervous as I'd read they were extremely stringent due to how competitive they are, but it's turned out they are quite reasonable and pragmatic!

Good Luck...

bluep

Thanks - that's helpful to know! I suppose the only explanation I could offer is that the savings were in ISAs so we didn't want to withdraw it unless we had to...and didn't know that it would make a difference to mortgage lending, otherwise we'd have got rid of the ODs and offset savings against them.

It's slightly different with us because we both have authorised ODs of up to £1500 and regularly (for 7-10 days of the month) are £200 - £800 overdrawn. Stupid given that we've got thousands sitting in an ISA as well as a house deposit in premium bonds. It's just been a hangover from student days and we kept savings separate in order to stop them disappearing in general spending...

The helpful thing hopefully is that the two banks I approached for a mortgage in principle offered me 3 x what we need to borrow (and this was just based on my salary) so that, along with our 25-30% deposit hopefully makes us less risky?!

FreezingWarm

Ditto!

We're in the same boat-

I've got 25% Deposit with an additional property, and they're willing to lend

Southernlass

Good luck!