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Overdraft, mortgage question
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Abigail1990
Posts: 51 Forumite
Hi all
I was just wondering the impact an authorised overdraft has on a mortgage application. I have been asked to provide 3 months bank statements. My limit is £1500. March shows me as being overdrawn £600 by the end of the month (some of the month the account was in credit), April the account was in credit the whole month, May the account was in credit the whole month until my daughter's standing order of £80 came out on the 30th, the day before I got paid but I rectified that straight away and transferred the money back until the next day.
Because of the way the bank issues the statements they don't run from the 1st to the 30th and the 1st statement which includes most of March includes me being in £1000.00 overdrawn in February (they run 26th Feb-22 March.) Because of this I thought it better to go to the bank and get them to print the statements from 1st March-31st May but then I realised the statements the bank printed dont show the agreed overdraft limit! Therefore when i was £600 overdrawn in March and when i briefly went overdrawn in May it could look as though it was unauthorised. I called the bank to ask if they could provide a letter stating the agreed overdraft limit and they said no.
Do you think this is a deal breaker for our mortgage? We have an aip however when my broker asked me about overdrafts when he processed the aip i stupidly said no as I thought he meant whether I was in an overdraft at that time, which I wasn't. Overdraft doesn't show up on my credit report as the dates it was reported I was not overdrawn.
I have no credit cards with balances on, £145 repayment monthly for dental finance and my husband has a credit card of which there is around a £200 balance out of £1800 limit (he had to get one to.build his credit score as he is on a visa.) Husband does not have an overdraft.
We have 11% deposit.
Thank you so much for all your invaluable advice, I have been asking so many questions on this forum recently!
I was just wondering the impact an authorised overdraft has on a mortgage application. I have been asked to provide 3 months bank statements. My limit is £1500. March shows me as being overdrawn £600 by the end of the month (some of the month the account was in credit), April the account was in credit the whole month, May the account was in credit the whole month until my daughter's standing order of £80 came out on the 30th, the day before I got paid but I rectified that straight away and transferred the money back until the next day.
Because of the way the bank issues the statements they don't run from the 1st to the 30th and the 1st statement which includes most of March includes me being in £1000.00 overdrawn in February (they run 26th Feb-22 March.) Because of this I thought it better to go to the bank and get them to print the statements from 1st March-31st May but then I realised the statements the bank printed dont show the agreed overdraft limit! Therefore when i was £600 overdrawn in March and when i briefly went overdrawn in May it could look as though it was unauthorised. I called the bank to ask if they could provide a letter stating the agreed overdraft limit and they said no.
Do you think this is a deal breaker for our mortgage? We have an aip however when my broker asked me about overdrafts when he processed the aip i stupidly said no as I thought he meant whether I was in an overdraft at that time, which I wasn't. Overdraft doesn't show up on my credit report as the dates it was reported I was not overdrawn.
I have no credit cards with balances on, £145 repayment monthly for dental finance and my husband has a credit card of which there is around a £200 balance out of £1800 limit (he had to get one to.build his credit score as he is on a visa.) Husband does not have an overdraft.
We have 11% deposit.
Thank you so much for all your invaluable advice, I have been asking so many questions on this forum recently!
0
Comments
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Probably won't have any impact whatsoever.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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