Arranged Overdraft and Mortgage

leila96

Hello,

Just looking for some advise/experiences with Nationwide and use of an arranged overdraft. 

We are porting our existing mortgage of 175k and asking for an additional amount of around 70k to purchase a house with a 10% deposit. We have a DIP and are well within our borrowing allowance based on our salaries. Are nationwide likely to ask for bank statements for an application from an existing customer?

My concern is that I have a £500 arranged overdraft which I stupidly dip into each month by around 200-300 by the last week or so. Obviously this is cleared every month when I get paid. Annoyingly the only reason I go into this is because I send a chunk into my savings account every time I get paid, so have quite significant savings which are not being used towards our house. Would this be likely to affect my application or would the bank see that I am well within my means and the moneys gone into savings, so could obviously clear an overdraft straight away if needed.

Really panicking about my mortgage application, but I’m a bit of a worrier! Any advise would be appreciated!

thanks x 

Thrugelmir

Lenders don't see savings. Overdraft usage suggests that personal finances aren't managed well. The lender will see the overdrawn balance (if any) at the date your bank reports it's data.  Though taken in total isolation shouldn't cause an issue. 

Bex_27

How did you get on? I am constantly in my OD but looking to pay it all off when I receive a lump some in a couple weeks. We are just about to apply for a mortgage, just waiting for the DIP. My MA seems to think we will be fine but I am panicking.