Will i get an mortgage if iv been in my planned overdraft within the year????

Firsttimebuyer3

Hello! I am a first time buyer, and me and my fiance are looking to buy a house next year. This year i slipped into my planned overdraft and made the mistake of increasing it, and each month since march iv paid it off and gone back into it... DAFT i know, anyway, iv pretty much worked my way out of it now! BUT im scared that this could effect my mortgage application? I have recently done an experian credit check and it came back at 897 out of 999, it says that thats a 'Good' score. We have more than enough for a deposit in savings. Im just really worried i may be declined! If anybody has any information or knowledge on this situation please shine some light!

Thanks alot!

First time buyer! :j

Contemptuous

Based on the limited information you've given, it seems highly unlikely you would be declined on that basis.

Lenders are ok with people using planned overdrafts as long as you're still living within your means - if you're not using the overdraft at all anymore it shouldn't have an impact on affordability.

kirtsypoos

Hi Firstimebuyer3,

I've just been through the mortgage app and had a mortgage offer and I have been in my planned overdraft every month this year. It's not something I'm proud of, but the interest rate on the overdraft was less than one of my CC interest rate so made more sense as I wasn't planning to get a mortgage at the time!

I think it probably depends on the lender and how much you are asking to borrow, but that is pure guesswork on my behalf as I'm not a mortgage broker!