Worried about joint mortgage with my overdraft? Any advice please?

Xxlouisekxx

Hi I was wondering if anyone has any advice or knowledge regarding this? My partner and I are first time buyers we have got an agreement in principle it's for a 100k house and we have a 5 percent deposit. We have put an offer in and it's been accepted so we now have to complete the full application, my partner has excellent credit no loans , nothing on his credit card where as I have fair credit,I have one year left on my car finance and about 1000 on my credit card the broker said that isn't an issue but I'm worried about my overdraft.i have a 500 pound overdraft that I'm in about 2 weeks out of the month then my wages pay it off every month.. I have never gone over the overdraft.. Do u think this could seriously damage our chances of being accepted? Thank you in advance

ACG

Ask the question before applying but if that prevents you getting a Mortgage I would be very surprised.

tom2205

I would find this in no way alarming and wouldn't be concerned.

Thrugelmir

Why not just clear it from your savings?

Xxlouisekxx

All the money in the savings at the moment is for the house after that I could clear my overdraft within 2 months out of my own funds

Xxlouisekxx

Anyone else in a similar situation?

Resh

Xxlouisekxx wrote: »

Anyone else in a similar situation?

Yes, my husband and I just got a mortgage offer and we are in a similar position. 5% deposit on an 82.5k house, constantly in our approved overdraft, but never beyond it. I was worried about it, too, but the lender (TSB) didn't seem to care. But then, my husband has spotless credit and the loan is for less than 2x my husband's gross income and with our combined income we easily passed the stress test up to 11% interest. Those factors probably offset the horror of our bank statements.

Xxlouisekxx

Thank you for your reply it's nice to hear others similar as mine is pretty similar to you.. The house is 90000 with 5 percent deposit and our gross anual income is 2.5x value of house so that's not bad is it? I'm so new to this I don't know much lol did you go through a broker?

Resh

Xxlouisekxx wrote: »

Thank you for your reply it's nice to hear others similar as mine is pretty similar to you.. The house is 90000 with 5 percent deposit and our gross anual income is 2.5x value of house so that's not bad is it? I'm so new to this I don't know much lol did you go through a broker?

We're first time buyers, too. We shopped around for a broker and found a lovely local man who made the process incredibly painless. I didn't even know we had actually applied for the mortgage the last time we left his office! It makes all the difference to find the right one, though.

twigpig

I'm sure to give you an agreement in principle, they would have seen your credit file and this would show your overdraft. I wouldn't worry. A lot of people have overdrafts, myself included.