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Overdraft - how long should I be out of it?
DisneyLisa
Posts: 207 Forumite
We are paying off a few things in the next few months so should be able to stop going into our overdraft in Oct. If I want to apply for a mortgage how long should I wait after I stop using the overdraft?
Is 4/5 months okay? I dont really want to wait much longer but will if i have to. It will take us that time to get our deposit sorted
A girl at work was a mortgage underwriter in her last job and said there is a shift to stop penalising people for being overdrafts but im not sure if that is across the board of just her ex employer.
Hope the question makes sense
Lisa
Is 4/5 months okay? I dont really want to wait much longer but will if i have to. It will take us that time to get our deposit sorted
A girl at work was a mortgage underwriter in her last job and said there is a shift to stop penalising people for being overdrafts but im not sure if that is across the board of just her ex employer.
Hope the question makes sense
Lisa
Won a holiday every year since 2014......come on 2021!!
2020 Winnings Value £3750
2020 Winnings Value £3750
0
Comments
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Hi,
As long as you are within your overdraft limit, it shouldn't be much of a problem.
Overdraft is a credit facility available to you just like credit cards. It might affect the amount that you can borrow but shouldn't stop you from getting a mortgage.0 -
ExpertAdvice wrote: »Hi,
As long as you are within your overdraft limit, it shouldn't be much of a problem.
Overdraft is a credit facility available to you just like credit cards. It might affect the amount that you can borrow but shouldn't stop you from getting a mortgage.
I have never gone over my overdraft limit.Won a holiday every year since 2014......come on 2021!!
2020 Winnings Value £37500 -
As long as you clear it each month I don't see the problem applying for a mortgage at any time.DisneyLisa wrote: »We are paying off a few things in the next few months so should be able to stop going into our overdraft in Oct. If I want to apply for a mortgage how long should I wait after I stop using the overdraft?
Is 4/5 months okay? I dont really want to wait much longer but will if i have to. It will take us that time to get our deposit sorted
A girl at work was a mortgage underwriter in her last job and said there is a shift to stop penalising people for being overdrafts but im not sure if that is across the board of just her ex employer.
Hope the question makes sense
Lisa:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
Thats good to know. I am not ready to apply yet as I want to clear some CC debt firstWon a holiday every year since 2014......come on 2021!!
2020 Winnings Value £37500 -
If you using an overdraft facility every month. Then sounds as if you haven't even started saving for the fess or deposit as yet. Focus on one step at a time. Clearing debt should be the priority.0
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