Applying for a mortgage - Overdrafts

Tomh1

Good morning everyone.

I am looking to apply for my first mortgage sooner than I expected.

With it all being so new to me and having little experience I have a lot of worries.

I have a planned overdraft of 200 pounds and over the last few months I have been into the overdraft for approximately a week before I get paid and I am then out of it again.

Is this going to affect my chances of acceptance?

How bad is this?

Thank you

csgohan4

depends on the lender, but I would be more worried about why your using the overdraft and seeing if you can afford the mortgage?


Will also depends on your total debt and income for affordability

Tomh1

Thank you.

I could have stayed out of the overdraft technically as I have been putting 200 into a help to buy ISA

I wasn't expecting to be applying until next year when I would have had more than 3 months without using my overdraft

CharlieB89

I'm in a similar situation. I could pay off my agreed OD in one go but have been putting my money towards deposit savings. I'm speaking to a Mortgage Advisor tomorrow so I'm hoping they give me a positive response! Good luck

Cj1392

We have just got a mortgage and are always in our £600 overdraft tbe week before payday! Sometimes by up to £550! No issues at all. I think it does depend on lender but we had the overdraft for so many years. If you are using a broker they will know :-)

MortgageMamma

There are too many factors about your circumstances that I don't know to be able to say for sure, but overdrafts are not usually a problem and yours is a small one.

Speak to a whole of market mortgage adviser, get them to do an affordability assessment/calculation and then you should be able to identify if the overdraft is going to be a problem

MM