Just cleared overdraft and credit card, got an AIP, can I apply for a mortgage now?

l3mmmy

I'll try and write this so it makes sense!

Over the last year myself and my boyfriend have saved enough for a deposit on a house. We've never had any 'debt' as such but we both had overdrafts of over £1,000 which we were in constantly. We recently cleared these (I cleared mine a couple of months ago and he cleared his this week). We both have credit cards but always pay them off in full monthly. He hasn't used his for over a month and I've just paid the tiny balance of £10 that was on mine.

We're going to view a house Saturday so applied for an AIP with Halifax last night, we put £0 in overdrafts and credit cards because currently they are £0. We were approved. My question is, if we happen to find a house and apply for the mortgage in the next month, will the searches on our credit files still say we have overdrafts and credit card balances as the system won't have updated yet? Will this affect us in getting a mortgage?

I'm sure I'm worrying unnecessarily, especially re the credit cards because we always paid them in full anyway. But I'm more concerned it'll still say my boyfriend has an overdraft.

How does it work when they run the credit check?

Bermonia

In essence you are correct, they are still likely to show, as would your old statements - how big an impact this would be is arguable, people tend to dip in and out of overdrafts as long as they are managed I wouldn’t expect this to be a major issue.

Exodi

I'm surprised you decided to save so much for a deposit on a house over the last year whilst paying £££ staying in overdraft.

Nonetheless, if you weren't defaulting all over the place, you should have no issue. I'd do this through a broker, they will know better which lenders would be more receptive to credit usage.

amnblog

Yes, you are worrying unnecessarily

MortgageMamma

I can;t see any problems for you unless you were exceeding your overdraft limits. If the underwriter asks why you were always in your overdrafts tell them you were saving as quick as you could for a deposit so used the overdraft to fund you whilst saving. As the deposits a one off thing the underwriter should accept that reason.