Mortgage Application with Underwriters - Overdraft query

confuzzled2014

Hi all,

Just looking for any views - my account has been managed well and usually the arranged overdraft is used slightly in the few days leading to pay day and then our wages will boost it back up (£300 overdraft) but then towards the next pay day we will usually be in it slightly again.

One query I do have is after Christmas, we did go into it more and the day BEFORE our pay day (this hasn't happened before) as a direct debit came out and took is £9 into the unarranged territory. I noticed the following day and we had a savings account so I used our savings to get us back into the 'safe zone' but we incurred a 1 day charge of £6. Has anyone ever had anything similar to this and do you think its enough for them to say no??

Thanks

Wozza85

If that's the only negative you should be ok. Spoke to my broker about this and he said in my instance that I'll be ok and i use my overdraft most months but my salary brings it back into credit. I even asked him yesterday if I should just pay off the overdraft and close it so it stops me from using it as it's just a habit now, and he said not to worry about that.

confuzzled2014

Hi Wozza85 - thanks for the reply. Okay thats promising, as yeah it was just that time and it was 24 hours, we did have the funds but not in that account which was a pain!! And then we got paid too. Fingers crossed I suppose...

Thanks for your post.

GMS

Which lender. What loan to value?

Wozza85

confuzzled2014 wrote: »

Hi Wozza85 - thanks for the reply. Okay thats promising, as yeah it was just that time and it was 24 hours, we did have the funds but not in that account which was a pain!! And then we got paid too. Fingers crossed I suppose...

Thanks for your post.

No problem, obviously it differs depending which lender but I'm currently going through santander. As long as salary brings it back into credit that should look better than those who's salary keeps them in their overdraft every month.

confuzzled2014

GMS wrote: »

Which lender. What loan to value?

Hi GMS - it is with Natwest, 95%. They are our bank.

Thanks

kingstreet

AFAIK if you have any "overlimit" or "unauthorised borrowing" charges NatWest usually declines until account conduct is satisfactory for three months or more.

You can only hope the amount and period in question is deemed trivial and ignored if it was just a one-off.

confuzzled2014

Underwriters called yesterday - they are willing to give us a mortgage and are now arranging the valuation :-) Goes to show that sometimes they will actually take into account your history so don't give up if not everything is perfect on a 95% LTV:T