Is overdraft charge likely to mess up remortgage?

d0nkeyk0ng

We're due to come out of my first mortage fixed rate deal 28th February 2017. Up until a few months ago, I'd been living in my overdraft because of getting married, buying furniture etc but I'd been slowly paying it off. Wife suggested just giving me the money from her savings which meant the overdraft was cleared by end of October.

However due to the way Natwest arrange the OD fees, they charged until 19th Oct in November, then the period from 19th Oct to 31st Oct in Dec.

Bit stressed as I was hoping that I would have three months of bank statements with no OD charges on it. I was planning on going for another fixed rate deal for another two years.

Any thoughts?

muhandis

Is your mortgage with Natwest as well?

d0nkeyk0ng wrote: »

We're due to come out of my first mortage fixed rate deal 28th February 2017. Up until a few months ago, I'd been living in my overdraft because of getting married, buying furniture etc but I'd been slowly paying it off. Wife suggested just giving me the money from her savings which meant the overdraft was cleared by end of October.

However due to the way Natwest arrange the OD fees, they charged until 19th Oct in November, then the period from 19th Oct to 31st Oct in Dec.

Bit stressed as I was hoping that I would have three months of bank statements with no OD charges on it. I was planning on going for another fixed rate deal for another two years.

Any thoughts?

d0nkeyk0ng

Nope it's with Nationwide.

muhandis

Then you should be able to do a non-advised product online switch with NW anytime in the 3 month period preceding the end of the fix without an affordability check or a new credit check.

As for what the impact of the OD charges are if you want to go for a remortgage with another lender (which would involve an affordability check and credit check), I'm sure the brokers on this thread will comment on that.

d0nkeyk0ng wrote: »

Nope it's with Nationwide.

d0nkeyk0ng

muhandis wrote: »

As for what the impact of the OD charges are if you want to go for a remortgage with another lender (which would involve an affordability check and credit check), I'm sure the brokers on this thread will comment on that.

That is my main issue. The other option may well be to switch to SVR and wait an additional month and apply again.

muhandis

Do remember that the range of bank statements asked for could be 0-12 months. Some lenders don't ask for any bank statements at all and some could ask for additional bank statements at the underwriting stage. So depending on the 3 month assumption might not work.

d0nkeyk0ng wrote: »

That is my main issue. The other option may well be to switch to SVR and wait an additional month and apply again.

d0nkeyk0ng

3 months is what they wanted when I first signed up to my first mortgage two years ago, so I presumed it would be the same. Looking online, Nationwide are doing a remortgage deal for 1.64% (with £999 fee) that looks good and drops my repayments of £1280 @ 3.69% down to £965/mth (84% LTV)

muhandis

Sounds good. Unless there's a huge difference to the other 85% LTV deals in the market that you can realistically access, in your place I would just plump for this and avoid the hassle of a remo. Plus you get £250 cashback for staying with NW.

d0nkeyk0ng wrote: »

3 months is what they wanted when I first signed up to my first mortgage two years ago, so I presumed it would be the same. Looking online, Nationwide are doing a remortgage deal for 1.64% (with £999 fee) that looks good and drops my repayments of £1280 @ 3.69% down to £965/mth (84% LTV)

ACG

Are you planning on staying with nationwide or thinking of looking at all options?

kingstreet

TBH I can't see any real problem remortgaging or going back to Nationwide for a customer retention product.

People are allowed to have and to use an overdraft and a lot of the post-MMR media garbage about eating only beans on toast for three months otherwise you wouldn't get a mortgage was exactly that, media garbage.

The level of micro-management being discussed is unlikely to be necessary.

d0nkeyk0ng

muhandis wrote: »

Sounds good. Unless there's a huge difference to the other 85% LTV deals in the market that you can realistically access.

HSBC by comparison are asking for 1.69%
TSB offering 1.54%
These are from online comparison websites and I'm aware of the limitations using such sites. Nationwide on their website were offering 1.64%.

ACG wrote: »

Are you planning on staying with nationwide or thinking of looking at all options?

TBH I'd jump if there's a significant saving to be made. A fixed deal means I know how much I'm paying a month, and means I can allocate more money to clearing my credit card debt. In the next 12-14 months, I would be debt-free apart from the mortgage.

kingstreet wrote: »

TBH I can't see any real problem remortgaging or going back to Nationwide for a customer retention product.

People are allowed to have and to use an overdraft

The account had an overdraft facility as a "leftover" from when it was a student account. Once I started earning money, I never really needed to dip into the overdraft until after I'd bought the house - when we decided to get married, buy furniture etc. The charges total £19/month but the last charge was £13.