Accidentally overdrawn - will it affect my mortgage?

jonesydave

I have a monzo account to do our food shopping on only and without noticing I accidentally went overdrawn by £1.50, I have the monzo debit card. We have our mortgage offer and due to complete next month, can someone let me know if this is going to affect it? I put extra in straight away. I thought it would just of got declined as I didn't sign up for an overdraft!

Really nervous this may be an issue

Thanks

Ebe_Scrooge

You'll be fine. An unauthorised overdraft will affect your credit history (and your totally fictitious credit score, which you can safely ignore !). But for such a small amount, and especially if you were only in overdraft for a day or two, the effect will be so small as to be meaningless - if it even gets reported to the CRA at all. Don't worry about it.

SnowTiger

jonesydave wrote: »

I have a monzo account to do our food shopping on only and without noticing I accidentally went overdrawn by £1.50, I have the monzo debit card. We have our mortgage offer and due to complete next month, can someone let me know if this is going to affect it? I put extra in straight away. I thought it would just of got declined as I didn't sign up for an overdraft!

Really nervous this may be an issue

Monzo only reports my account to TransUnion/Callcredit.

According to Monzo:

If you don’t have an overdraft with us, your balance can still go into negative. This is called an "unarranged" overdraft.

[...]

Offline payments are rare and are often for small amounts so we have a £20 free buffer to cover these.

If you go beyond your free buffer, we’ll send you a notification and you'll see the fee calculator stick to the top of your feed in your Home tab. You’ll have until at least midnight that day to add some money.

I doubt Monzo will report the small overdraft to CRAs; and I think it's unlikely your mortgage provider will know about it.