currently in overdraft (but paying off soon) and remortgaging soon

SMW87

Hello all.

I know overdrafts are discussed regularly here but I couldn’t find an answer for this..

I am currently in my agreed overdraft every other month or so 50-150 overdrawn but if I was strict I could easily stop this habit. I currently am very overdrawn (£800) as my wife's tuition fees are due and her work hasn’t reimbursed her yet. When they do, my overdraft will be clear (hoping within the next few weeks).

My plan was to be overdraft free, have everything neat and tidy and apply with my statements for 3 months showing no minus overdraft figure. We aren’t due to remortage until April.

However, a great deal, with great cashback is currently on offer and the application needs to be made by 1st December. I was not hoping to look around until Jan/feb but would be keen to apply for this deal.

If I have my overdraft clear before applying, even with the overdraft minus amount showing on the 3 month statement, will I still be favourable to lender? Or should I hold off and apply for different deals come jan/feb?

Our finances are usually good but this surprise bill came as an admin error with my wife’s employer.

The remortgage will be £73% LTV.

Thanks

S

LRmortgage

The Lender that you want to apply with will have an affordability calculator.

As long as you include the overdraft amount within the calculation and it gives you the correct lending amount then as long as the overdraft is an arranged one then you shouldn’t have any issues.

SMW87

Perfect, many thanks for the reply

S

kwame41

Just an observsation.


I would avoid a mortgage that gives you cashback. You will pay it back over the term of the mortgage which will be a lot of money.


Go for a no fee deal if you can and no cashback.