Overdraft mortgage application

rebthomp484

This is my first post! Currently going through a mortgage application I live in my arranged £1200 overdraft but pay it off every month with my wages but then I’m back in it once bills ect have come out will this affect their decision? I’m so nervous as I already have an old default on my credit file too! Mortgage advisor is working hard we’ve gone with Coventry building society 

K_S

Trust your broker, they only get paid when you complete so there's no point of recommending Coventry if they didn't think it was the most appropriate product for you.

Have you got a DIP or AIP from Coventry? Has a credit check been done?

rebthomp484

He’s doing the AIP today but I did get one with another highstreet lender accepted when we did one on our own so that’s good! It just dawned on me with my overdraft I know a lot of people do live in them but it’s paid off every month so I hope it doesn’t look negative! Thanks for responding I just want this over I’m a nervous wreck 

K_S

rebthomp484 said:

He’s doing the AIP today but I did get one with another highstreet lender accepted when we did one on our own so that’s good! It just dawned on me with my overdraft I know a lot of people do live in them but it’s paid off every month so I hope it doesn’t look negative! Thanks for responding I just want this over I’m a nervous wreck 

@rebthomp484 From experience, things like sustained use of an overdraft can be a sticking point if the affordability numbers are very tight and/or the application is referred for a manual review. So try not to worry about it until there's something to worry about! Good luck with the AIP.

Thrugelmir

Why haven't you cleared the overdraft rather than incur charges unneccessarily? 

rebthomp484

It’s an arranged overdraft I have been reducing it each month to get it back down but with all the saving for a deposit it’s not been possible 

MWT

rebthomp484 said:

It’s an arranged overdraft I have been reducing it each month to get it back down but with all the saving for a deposit it’s not been possible 

You are effectively borrowing from the bank to fund your deposit, it doesn't look good.

I hope you get the mortgage you want but make sure you can clear that overdraft once you have your new house costs and the mortgage to deal with ...

Thrugelmir

rebthomp484 said:

It’s an arranged overdraft I have been reducing it each month to get it back down but with all the saving for a deposit it’s not been possible 

As an observation. Not the best way of approaching a mortgage application. Overdraft should have been the priority. As suggests your finances are extremely tight. With little room to cope with unexpected financial outgoings. 

rebthomp484

Thank you for the responses I realise this will look negative to a lender we did get approved the DIP today so hoping it all looks up from here! 

Navigaor31

I recently got a mortgage with Coventry (last month) 

My statements showed me in my overdraft each month as well as my partner's. 
All went through smoothly and was all sorted within 2 weeks. 

It was very smooth.

rebthomp484

That’s great news! Thank you for your response!