Unarranged overdraft on mortgage application

Zandimos

Hi all,

Currently panicking like mad.

I have my mortgage offer from Skipton and had it for a few weeks now whilst waiting to exchange. I made a payment tonight which has been charged 3 times rather than once meaning I have gone negative and I don’t have an overdraft. I instantly transferred money into the account so I am back into the positive.

The money was incorrectly charged meaning I went into the negative. This money will obviously be refunded once I call them tomorrow.

What I’m worried about is will this show on my credit score and ultimately be seen by my lender when they do final checks upon completion and they withdraw the offer? I don’t see why I should be penalised for going into the negative when I was incorrectly charged?

[Deleted User]

If you've already corrected it, it almost certainly won't be reported to your credit files.

Zandimos

I have called HSBC and asked them to cancel the two incorrect payments but they said they can’t. I will ring the other company tomorrow to sort it tomorrow.

HSBC said that I have been shown as overdrawn so will it be on my credit file?

[Deleted User]

See post 2.

The only way to be sure is to check your files in a few weeks.

[Deleted User]

As above, highly unlikely to be on credit file. HSBC will say it'll show either before 1: They don't want a subsequent complaint if it does or 2: The person you spoke to wasn't sure so just said it will

IF it goes on the credit file (unlikely), just send your bank statement through showing the duplicate payments and subsequent refunds.

Underwriters would use discretion to allow it to proceed continue as it's clearly a bank and a human error.

It's a lot harder for banks to withdraw mortgage offers these days - they need strong grounds to do so. Proof a clear error was made means they wouldn't meet that test.

James_d_2

It will not show on your credit score if you paid in straight away the only time it would is if you was over drawn at the same time of the month they update your credit score
On your report it will show you current balance at the time it gets updated so I would not worrie about it

Zandimos

Hi,

Thank you for your reply.

I spoke to HSBC again and my mortgage advisor who have both said there’s nothing to worry about and is very common. As long as I have rectified it in good time it will be fine.

Panic over!