First time buyer living in my overdraft - help!

ViolaLass

Is this an interest-free overdraft or having you been paying interest in order to save?

SuperScary

The deposit has been saved almost entirely by myself. It's actually why in most cases I went into the overdraft, I was being overly ambitious with the monthly saving and left myself so little each month it only took a few unexpected expenses and I was into the overdraft.

I was typically putting 75% of monthly earnings into savings.

Sadly the overdraft wasn't interest free, though I don't recall being charged more than about £3 in a month for using it .

Hopefully this will come across as misguided saving rather than reckless behaviour. I'll certainly update on here when I get an outcome.

ViolaLass

SuperScary wrote: »

Sadly the overdraft wasn't interest free, though I don't recall being charged more than about £3 in a month for using it .

Hopefully this will come across as misguided saving rather than reckless behaviour. I'll certainly update on here when I get an outcome.

I don't know how bothered the banks will be but it does come across as someone who doesn't understand interest!

SuperScary

Hi ViolaLass,

won't disagree the behaviour was stupid, but I was aware there would be a tiny charge for using the overdraft. Typically the money being saved was going straight into an ISA and as you can't replace what you take out, I took the view - without giving it much thought - that paying a £1 or too on the overdraft was better than pulling out the money.

Ultimately if I'd been thinking more wisely I'd never have had an overdraft at all, but as I say earlier on, I simply never considered an agreed overdraft to be a consideration for a future mortgage.

I'm really not sure how this will turn out now, I'm just hoping the religious saving done each month for many years will count for something.

Once again thanks for all contributors.

matt1234

SuperScary wrote: »

Hi ViolaLass,

won't disagree the behaviour was stupid, but I was aware there would be a tiny charge for using the overdraft. Typically the money being saved was going straight into an ISA and as you can't replace what you take out, I took the view - without giving it much thought - that paying a £1 or too on the overdraft was better than pulling out the money.

Ultimately if I'd been thinking more wisely I'd never have had an overdraft at all, but as I say earlier on, I simply never considered an agreed overdraft to be a consideration for a future mortgage.

I'm really not sure how this will turn out now, I'm just hoping the religious saving done each month for many years will count for something.

Once again thanks for all contributors.

With a 43% deposit you are looking for a mortgage 2 x your salary. I very very very much doubt going over your overdraft would form the basis for a rejection based on those figures. I think late/missed payments are more serious but I am no expert on that.

SuperScary

Hi Matt1234,

Sadly I'd be borrowing slightly over 4 x my salary (£175,000) so I'm not all that attractive.

The amount I'd need - £175,000 - is still below what most high street lenders would lend me in a perfect situation (I've not seen any lender that won't lend over £210k based on my figures, but that's not taking into account my overdraft issues).

We shall see. I'm hoping for the best, planning for the worst.

Thrugelmir

SuperScary wrote: »

Thanks all for your comments, I'm feeling it's about 50/50 and there is some hope!

The fact you save regularly is a major plus. Just make sure than you take more care. When it comes to budgeting and the balance in your account.

Vodafone

SuperScary wrote: »

Hi,

I'm a first time buyer about to apply for a mortgage and I'm worried my history of using my current account overdraft will cause problems.

An Experian check 4 years ago came back as fine (annoyingly can't recall score) with the only minor issue being a !!!!-up by mobile phone company Vodafone incorrectly saying I'd missed the very first payment on a new contract with them which wasn't true (it was direct debit and they took the monthly fee as expected, no idea what this was about).

I guess I'm asking for any advice, this has me up at nights not sleeping.

Thanks,

M

Hi M,

If you'd like me to take a closer look at the Vodafone sides of things, could you email me with your details via the link in our profile here?

All you need to do is copy and paste the link into your web browser and it'll take you to the Contact us form on our website. To make sure it reaches me could you also quote the code WRT135 - MSE in the subject line?

Once sent you'll receive an automated reply with a reference number. So I can make sure I've got it could you update the thread with this and I'll get back to you as soon as possible?

Kind regards,

Lee

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