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!
Gone over an arranged overdraft 3 months ago, will it affect morgtage application?
mickburkejnr
Posts: 66 Forumite
Hi everyone,
My partner and I are going to apply for a mortgage as we have found a house we'd love to buy. We have the deposit, both of us can afford the repayments, there is nothing stopping us paying the mortgage off.
However, we are going to apply through the Yorkshire Building Society and the guy I spoke to was very helpful and so far he said they could help us. He wouldn't give us a mortgage in principle before we had an offer accepted as he feared it would affect our credit rating as if our offer was declined and we would have to wait for another house for a few months we'd have to go through the process again. But he said he would speak to the estate agent on our behalf if they asked us about having a mortgage in principle. This seems fair enough to me!
Anyway, on the documents that we have to provide for a mortgage application we have to supply 3 months of bank statements, obviously we can do this. But I have a £900 arranged overdraft, and during July I changed job and had to have a lot of dental work done. The previous dentist was a butcher and I was in a lot of pain, so I had to pay for it. This put me over my overdraft by £50 in July, but before the month was out I had put £200 to clear this. Plus I have been in my overdraft every month as we were saving money for a deposit, but I receive about £1,950 in wages each month which clears it.
On the document it says the bank statements are for a record of credits, but I'm concerned about the £50 figure of me going over. Aside from this, I have a good credit rating, and have never been declined credit in the past. Two months ago I actually successfully applied for a Barclaycard Platinum card and was given a large credit limit. So to my mind I should be alright, but my partner has started to panic.
Because we have a lot of savings as well, I can show that I can pay off any debt I have (credit cards, overdraft) on demand, so again this doesn't concern me too much. But neither of us have done anything like this before, so I'd like to know whether this one black mark could go against us?
My partner and I are going to apply for a mortgage as we have found a house we'd love to buy. We have the deposit, both of us can afford the repayments, there is nothing stopping us paying the mortgage off.
However, we are going to apply through the Yorkshire Building Society and the guy I spoke to was very helpful and so far he said they could help us. He wouldn't give us a mortgage in principle before we had an offer accepted as he feared it would affect our credit rating as if our offer was declined and we would have to wait for another house for a few months we'd have to go through the process again. But he said he would speak to the estate agent on our behalf if they asked us about having a mortgage in principle. This seems fair enough to me!
Anyway, on the documents that we have to provide for a mortgage application we have to supply 3 months of bank statements, obviously we can do this. But I have a £900 arranged overdraft, and during July I changed job and had to have a lot of dental work done. The previous dentist was a butcher and I was in a lot of pain, so I had to pay for it. This put me over my overdraft by £50 in July, but before the month was out I had put £200 to clear this. Plus I have been in my overdraft every month as we were saving money for a deposit, but I receive about £1,950 in wages each month which clears it.
On the document it says the bank statements are for a record of credits, but I'm concerned about the £50 figure of me going over. Aside from this, I have a good credit rating, and have never been declined credit in the past. Two months ago I actually successfully applied for a Barclaycard Platinum card and was given a large credit limit. So to my mind I should be alright, but my partner has started to panic.
Because we have a lot of savings as well, I can show that I can pay off any debt I have (credit cards, overdraft) on demand, so again this doesn't concern me too much. But neither of us have done anything like this before, so I'd like to know whether this one black mark could go against us?
0
Comments
-
If you wasn't over your overdraft for long it won't have even been even recorded with CRAs.Im an ex employee RBS GroupHowever Any Opinion Given On MSE Is Strictly My Own0
-
Just had a look and I was over it for 7 days? Is this a long time because it feels like it?0
-
mickburkejnr wrote: »Just had a look and I was over it for 7 days? Is this a long time because it feels like it?
Hell no that won't even be recorded the information gets updated once a month so as long as you was within your limits on that day you'll be fine.
Just to be sure register for these it's free so you can check your files:
https://www.noddle.co.uk
https://www.clearscore.comIm an ex employee RBS GroupHowever Any Opinion Given On MSE Is Strictly My Own0 -
Brilliant, thank you so much for the advice!0
-
mickburkejnr wrote: »Brilliant, thank you so much for the advice!
You should always check your credit files prior to making a mortgage application to look for any possible errors.Im an ex employee RBS GroupHowever Any Opinion Given On MSE Is Strictly My Own0 -
This will show on the bank statements you send to YBS (the agreed overdraft and how much you have used of it)
YBS will ask when doing the application (What is the maximum you have been overdrawn by In the last 3 months) this affects the affordability of how much they will lend you
I have been a Mortgage customer of there's for the past 4 and half years and I am in the process of moving and have found there whole new affordability criteria horrific.MFW 2025 #44 £0/£70000 -
Just an update on this.
Instead of YBS we went to Halifax, and we've been accepted for the 90% mortgage straight away. Which is brilliant!
As of the moment the Equifax details are still incorrect, even after being instructed to change them.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards