Graduate Overdraft & Mortgage Application

DRMANTISTOBOGGAN

Hi, looking for some advice on the use of 0% overdraft whilst getting a deposit together for a house.
Currently I have a 2k overdraft facility with my graduate account and about 18 months left with this overdraft before it becomes a standard account (graduate accounts with bank last 3 years).


My question is if a house were to come up before we had our full deposit together, would I be able to use that overdraft as a kind of interest free loan to boost savings by 2k to secure the house then repay it afterwards?
Does anyone have any experience dealing with something like this, on either the lender/borrower side?


Cheers

CLAPTON

DRMANTISTOBOGGAN wrote: »

Hi, looking for some advice on the use of 0% overdraft whilst getting a deposit together for a house.
Currently I have a 2k overdraft facility with my graduate account and about 18 months left with this overdraft before it becomes a standard account (graduate accounts with bank last 3 years).


My question is if a house were to come up before we had our full deposit together, would I be able to use that overdraft as a kind of interest free loan to boost savings by 2k to secure the house then repay it afterwards?
Does anyone have any experience dealing with something like this, on either the lender/borrower side?


Cheers

often your lender will want evidence of your deposit

DRMANTISTOBOGGAN

Thanks for the reply. Evidence meaning they wouldn't accept an overdraft being used as part of a deposit?

Bravestar

DRMANTISTOBOGGAN wrote: »

Hi, looking for some advice on the use of 0% overdraft whilst getting a deposit together for a house.
Currently I have a 2k overdraft facility with my graduate account and about 18 months left with this overdraft before it becomes a standard account (graduate accounts with bank last 3 years).


My question is if a house were to come up before we had our full deposit together, would I be able to use that overdraft as a kind of interest free loan to boost savings by 2k to secure the house then repay it afterwards?
Does anyone have any experience dealing with something like this, on either the lender/borrower side?


Cheers

Buying a house is going to cost well over £2k in fees, taxes, etc.

So whilst the lender may need to see the source of the deposit (which you will have), you can then use your OD to pay for the fees you incur.

But honestly, don't overstrech yourself. Interest rates are at an all time low (and they can't fall much further so there is only one direction they will go)

If you are already planning on using unsecured loans in addition to secured loan (mortgage) to purchase the property, then it does sound like you are overstrectching yourself.
And make sure you have also budgetted for your fees, costs, as well as no doubt some fixtures & fittings (e.g. furniture, kitchen white goods, cutlery, crockery, carpets, curtains, even possibly costs of getting telephone/broadband installed/activated. TV aerial, etc).

e.g. you could probably save £2k by going for second hand furniture & kitchen goods rather than new.
Or maybe put off buying that brand new 72" plasma TV until you can afford it


Edit: Just saw your previous thread you posted last Decemeber that involved you in some kind of financial fraud.
https://forums.moneysavingexpert.com/discussion/5373987
I think you will have significant issues in getting any mortgage at present, sorry.