Mortgage approval when in overdraft

Cb1211

My boyfriend and I are looking to buy our first house, hopefully starting the process over the next few months. However, my boyfriend has 2 accounts where he is in his overdraft. One account, he goes into marginally on a monthly basis and the other one he doesn't spend out of, yet is £1000 into it. He has been putting money into this account each month to get out of it.

Having done experian credit checks, we both have an 'excellent' rating. We haven't had any financial advice from anyone yet, just worry this will negatively impact upon us. We also have the issue that if he gets out of that overdraft in the next couple of months, banks will want to see evidence of solid banks statements for a few months prior.

Anyone had any experience of this?

MickeyDaMouse

What other loans do you have? £1,000 isn't a huge amount on its own and unless he has lots of credit card debt he shouldn't have a massive problem.

They will look at it and it may cause a question for the underwriter but if your affordability still checks out fine along with your decent credit history then you should be fine.

Depends what your salaries are and what percentage you have free each month.

Cb1211

He also has around £2000 on a credit card, but he is paying that off at a quicker rate, much higher than the minimum payment which will hopefully be looked upon positively.

We have a combined income of £46000, with only that credit card payment and my car finance of £200 as monthly commitments.

MickeyDaMouse

Still not a massive debt.

Don't forget to add all your total debt up and also your total outgoings. It doesn't sound like it will be an issue though. And making more than the monthly payment certainly looks good.

David_White

It will largely be lender specific.

Some lenders naturally wouldn't be keen on heavy overdraft usage but there would be plenty of lenders where it wouldn't be a problem.