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Mortgage Application & Overdraft Usage

HDON91
HDON91 Posts: 3 Newbie
Third Anniversary
in Mortgages & endowments
Hi!

Just looking for some advice.
myself & my boyfriend are hoping to apply for a mortgage around August on a new build home. We both have an overdraft that we use each month. When we are paid we both come out of it but are in it every month. My mortgage advisor has said this isn’t something to worry about but I’ve read conflicting things online.
Appreciate if anybody has any advice on this or has any similar recent experience.

Thanks in advance.

Comments

  • ACG
    ACG Posts: 24,502 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    It can be a problem. But it does not need to be. 
    Some lenders will have an issue with it, others wont. 

    Trust your broker. They will avoid the lenders where it would be an issue by the sounds of it. 
    I am a Mortgage Adviser
    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.
  • K_S
    K_S Posts: 6,875 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    @hdon91 In the main, most mainstream lenders are fine with regular use of an arranged overdraft.

    It can be an issue in cases where there is high background debt, credit history issues, 95% LTV, etc. but I'd go with your brother's advice.

    I am a Mortgage Adviser - 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.

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