Brief dip into unarranged overdraft - impact on mortgage application

ichicc

Hello all


I have standing orders set up between a few of my current accounts such that normally one account receives £300 on the 24th of each month and then pays £300 out again on the 27th of each month. Unfortunately with the bank holiday weekend, the £300 SO into my account was delayed until today, which is the same day as the £300 SO out.



It looks like timing-wise the payment out happened first, so that I was about £200 into an unarranged overdraft for a few hours before the SO usually scheduled for the 24th finally came in to bring me back to a positive balance.


Now I wouldn't normally be fussed about this, but I'm currently looking to buy a house and may well be making a mortgage application in the next couple of months. Will this show up as a negative mark in their credit searches and potentially cause me issues?


This is the first time I've ever dipped into an unarranged overdraft, and as I mentioned it was only for a few hours. I'd be pretty damn annoyed if something as trivial as this scuppered my chances of getting the mortgage I need!


Would greatly appreciate your thoughts. Hopefully this is the correct subforum for this question.

Willing2Learn

I could be wrong, but I thought that banks don't generally consider an account overdrawn if the debt has been settled before the close of business. Like I said though... I could be wrong...

PRAISETHESUN

Nothing to worry about here - as long as the funds are received by the cut off time for your bank (usually by COB) then your daily balance will remain in credit and you have not been considered to be overdrawn.

My understanding of using overdrafts longer term however is a bit more limited though. In this situation, my understanding is that as long as you stay within the terms you have arranged with your bank (ie. your arranged limit), there would be no markers on your file even if you were overdrawn for longer periods of time. It's an expensive way to borrow mind so I wouldn't recommend, and your utilisation would be reflected on your files (similar to credit cards).