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FTB Mortgage Advice

Hi all,

Myself and my husband are buying an off plan house - we have reserved the plot and instructed a mortgage broker. The broker applied for our agreement in principle which was approved instantly. The house price is £318,995 and we have a £35k deposit. My question is regarding the actual mortgage application. I am so worried that we won't be offered a mortgage as I am currently in my overdraft as we have had a lot to pay for this month and I also paid off my student loan (hooray)!! My overdraft is £700 and I am in it by £250 at the moment. The broker has asked for 3 months of bank statements and I am so worried that mine are going to let us down.

Has anyone had any experience of having a mortgage approved when being in an overdraft/recently going into an overdraft?

Thanks

Comments

  • YHM
    YHM Posts: 650 Forumite
    Dipping into an authorised overdraft generally wouldn't be a concern to a lender.

    Exceeding overdraft limits on a regular basis, however, is a red flag. If you are using the overdraft well and not abusing the facility to excess, I cannot see that being an issue with any given lender
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
  • Thanks for your reply. Just to clarify, I never go over the agreed limit of £700.
  • YHM
    YHM Posts: 650 Forumite
    Ok, well sit back and relax and wait for your broker to give you some good news then (touch wood!)
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
  • Dont worry as YHM has said if its authorised and not regular it wont tend to be an issue at all
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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