We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Unplanned overdraft
T1NKERB3LL
Posts: 7 Forumite
Hi
Will occasionally going over your overdraft limit affect a mortgage application?
This is always paid off in full every month
Will occasionally going over your overdraft limit affect a mortgage application?
This is always paid off in full every month
0
Comments
-
Overlimits, unpaids and unauthorised borrowing charges visible on bank statements will cause some lenders to decline automatically.
You may be better to use a lender which doesn't normally require bank statements. An independent broker would help you achieve this.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
T1NKERB3LL wrote: »Hi
Will occasionally going over your overdraft limit affect a mortgage application?
This is always paid off in full every month
When you say paid off every month do you just mean that your salary puts your account back in credit and the overdraft builds up again until the next pay day.
If you are doing this every month then you should review your spending as having a mortgage could put even more pressure on it.Remember the saying: if it looks too good to be true it almost certainly is.0 -
T1NKERB3LL wrote: »Hi
Will occasionally going over your overdraft limit affect a mortgage application?
This is always paid off in full every month
"I'm struggling to finance my outgoings every month so resort to using an overdraft facility. Which only clears when I get paid".
And you are asking a lender to advance £'000's to purchase a property?0 -
Thank you both for getting back to me.
I only have an overdraft of £200.00.
I would say I dip into it a little bit..
I have only gone over it unplanned this month but I know lenders sometimes ask for a bank statement which is worrying me.
I think I have time to sort this out but its still a concern0 -
Occasionally using a small agreed overdraft is not going to be problem.
Always being at your overdraft limit before payday, or exceeding it, causing unauthorised borrowing charges or unpaids to appear on your bank statements isn't going to go down well.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
T1NKERB3LL wrote: »Thank you both for getting back to me.
I only have an overdraft of £200.00.
I would say I dip into it a little bit..
I have only gone over it unplanned this month but I know lenders sometimes ask for a bank statement which is worrying me.
I think I have time to sort this out but its still a concern
Overdrafts are reported to the CRA's. So your account activity (i.e. overdraft usage) will be totally visible for the past 72 months.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards