Going overdrawn just before Exchange

Glover1862

I'm due to exchange on a BTL this week, I'm about £2k short for the required deposit,one of my current accounts (not main one) has a £5k overdraft which I've had for many years and never used, would it be a problem if for the short term I used £2k from the OD to fund the deposit?


I have some shares I could sell but will take some time and also would ideally like to hang onto them, I'll get Cashback from the mortgage plus some other funds I'm expecting so OD will be paid with two weeks of completion. Is this a bad idea or will make no difference? Appreciate any advice.

Thrugelmir

Has your solicitor asked for evidence of the source of the deposit yet?

Glover1862

yes, that all done, exchange should happen this week and he'll let me know when to transfer the funds.

glentoran99

Glover1862 wrote: »

yes, that all done, exchange should happen this week and he'll let me know when to transfer the funds.

Could be considered fraud if you are borrowing the deposit and not declaring it as such

MortgageMamma

Check with your solicitor, he or she is best person to tell you as it could very much be dependent upon the lender and also your income vs credit commitments (if this is a BTL that checks income also)

Glover1862

Thanks for the info, I'd rather leave the solicitors out of it as they'll have to ask the lender, I'll work it out another way, its only £2k for 7 to 10 days max. I'll get my company to give me an extra £2k bonus!