Going in to overdraft

lydriver

This is stupid now I think about it but I have always used my £250 overdraft as if it was my own money since the first time I used it.
I Get charged £6 for 'agreed overdraft usage' although I don't think this was always the case
Always look at the 'available' figure on my online statement rather than the balance

I've always had plenty money in an instant access savings account (that has come from the current account with the overdraft!) so pointless really

Anyway, been reading this could be a problem when applying for mortgages as some may refuse you for going in to overdraft even once.
Should I wait a while and make sure to keep a positive balance before applying?

Or am I getting concerned about nothing?

Should I use a broker and tell them about the O/D?
I haven't applied for anything yet, was going to try getting an AIP today.

BaileyMoselle

I think there is a big difference between an authorised overdraft and and unauthorised overdraft. I am not offering any advice as I simply don't know what lenders think about it. Ironically the only time I went into my overdraft was on the day of exchanging. I had to pay the deposit as well as the solicitor fees and my current account went a few hundred quid into overdraft. I got paid that very day so it went straight back into black again.

kingstreet

Regular use of a small approved overdraft is not an issue for many lenders. There may be some you should avoid and these will depend on your product choice and loan to value.

Yorkshire Building Society Group would be one I'd avoid if going direct.

TBeckett100

Halifax didn't ask for a bank statement

lydriver

wow, do they just trust payslips?
I thought info about using overdraft would be in some kind of file they have access to (this is just based on my logic!)

kingstreet

Is your current account visible on any of your three credit files?

lydriver

I only signed up for that yesterday so have to wait on a code being sent through the post to verify it was me
unless there is another i could try that I don't have to wait on them sending a code?

Malmo

There are 3 Credit Reference Agencies in the UK - Experian, Equifax, Callcredit/Noddle. Lenders may report to 1, 2 or all 3 of them depending on their commercial relationships. Obtain a copy of your statutory credit report from both Equifax and Experian and register for a free account with Callcredit's monthly service called Noddle, which should be instant & free access. Then review the data reported about you from all 3 to obtain a full picture of your creditworthiness.

Experian Statutory Report

Equifax Statutory Report

Noddle

lydriver

thanks, it doesn't show on Noddle or Equifax
4/5 rating on Noddle, only negative thing I could find was one late payment to an online store card in 2012, again this was from putting too much in savings account rather than not having the money

roje

I'm in my overdraft every month. The broker hasn't really said much about it, it's authorised and I meet all my commitments. I'm going to pay it off with the proceeds of the house sale anyway, but it depends if you're maxed out with your equity as deposit (I am only putting part of my equity down as deposit).

Goldiegirl

lydriver wrote: »

wow, do they just trust payslips?
I thought info about using overdraft would be in some kind of file they have access to (this is just based on my logic!)

It'll depend on each individual case whether they ask for bank statements or not.