Mortgages and overdraft usage

Ftba.d

Hi Everyone,

Thanks in advance for responding.

I've been reading conflicting reports on how lenders view people using their overdraft. Some say it's an immediate no whilst others say it's ok as long as you haven't been over your overdraft limit.

As mine is interest free and has been since Uni, I've always used it (in hindsight foolishly?? ) even whilst saving and having enough set aside in other accounts to keep me out of it. Now worried that after submitting an application the lender will see the overdraft usage and it will be game over . Wouldn't my broker have advised me not to go forward with the application if it was a deal breaker ?

All of the credit report searches I've carried out read very well as I've not had any defaults etc but I don't know how much weighting the credit check carries and if this could counteract the possible damage from being in my interest free overdraft.

ruby_eskimo

Well I regularly go into my interest free overdraft around pay day and I've just been approved for a mortgage. I was very up front with the mortgage advisor and she didn't bat an eyelid really.

Thrugelmir

What's your plan if the overdraft starts to incur interest?

Ftba.d

Thanks Ruby. That has given me some hope .

Thrug, if they started to add interest I'd have the money to pay it off outright.

Ftba.d

Ruby, who did you get your mortgage with ?

glentoran99

Ftba.d wrote: »

Thanks Ruby. That has given me some hope .

Thrug, if they started to add interest I'd have the money to pay it off outright.

then why not pay it off now?

Ftba.d

When application went off I was well out of my overdraft but the 3 month statements show that I haven't been .

luis1988

We have just completed on our first house a month ago with Santander. We are both quite heavily into our interest free overdrafts, again a hangover from Uni, which had zero effect on the whole process. In fact, the whole process was pretty simple and there was no issues at all with getting the mortgage secured through a broker.

Ftba.d

Thanks Luis and congratulations on securing your mortgage ! Hopefully my overdraft history doesn't have an impact on my final outcome.

Jamie_Cortez

We go into our overdraft every month, but our pay clears it and then some each month.
We had no issues getting a mortgage with Natwest.

yessuz

reading this is a bit re-assuring!