Gambling overdraft debt cleared, but will it affect mortgage application?

[Deleted User]

Edited for privacy

macman

What does your credit history actually say? Do you have late payments or defaults showing on it? if so, they will remain visible for 6 years. That is what lenders are interested in. 

[Deleted User]

I also can't find this specifically in any of the credit score apps (Experian, Karma, Clearscore, MoneySupermarket), they all either have 'no information' or have a notice to say that 'the account is in credit, the account is not overdrawn, the account is being managed within the terms of your agreement'. Does this meant that because it was an authorised overdraft, this is fine?

Any fees were paid using the overdraft because I was in an overdraft for so long (over 45 days at one point, very close to £2k limit). I think I asked for a payment holiday at the time but don't remember. Just learnt that these stay on for 3 years. Absolutely beside myself.

(Told husband about the gambling this afternoon. Very painful but now just focused on Saturday.) 

theartfullodger

Ask yourself, would you lend someone with that history (including not telling joint applicant ) a lot of money please?

No offence but I doubt I would.

boxer234

Do you have any defaults ? You need to tell your mortgage advisor you are worried they are on your side.  They can tell you if it’s a problem or not.  I was asked for 3 months worth of bank statements. 

powerspowers

Well done on being honest with your husband, It’ll be better coming from you then him finding out via the mortgage application. I’d suggest being honest with the mortgage advisor as well (if it comes up) it’s likely they have come across this situation before. Stress the help you’ve had and emphasise how much covid caused you to struggle. And well done on getting help, stopping gambling and getting debt free- that’s a significant achievement. Good luck for next week 🤞

[Deleted User]

Thanks all. I’m not proud of what I did, but I’m doing my best to fix things now.

There’s nothing on any of my credit reports to say I defaulted (I think I always stayed within the overdraft, even if the fees were taken out of that sum and I was at the limit). I didn’t get any scary letters, but think I asked for some breathing space.Do either of these things change anything?

I’ve also had periods (not gambling) where I’ve used my overdraft a lot but paid the fees and stuck below the limit. It’s been over a year since I last used more than £200 of an overdraft.

boxer234

[Deleted User] said:

Thanks all. I’m not proud of what I did, but I’m doing my best to fix things now.

There’s nothing on any of my credit reports to say I defaulted (I think I always stayed within the overdraft, even if the fees were taken out of that sum and I was at the limit). I didn’t get any scary letters, but think I asked for some breathing space.Do either of these things change anything?

I’ve also had periods (not gambling) where I’ve used my overdraft a lot but paid the fees and stuck below the limit. It’s been over a year since I last used more than £200 of an overdraft.

I have just been through the process and did have some OD usage it wasn’t a problem but honestly discuss all your worries with your advisor I went through everything with mine so no surprises.  I don’t think this will be a problem for you.  

EssexJay

I like you was using my max overdraft along with about 6k in credit card use during the pandemic just to try and cover the bare essentials.

living in London with crazy high rents didn’t help this situation. But in March this year I recieved a long awaited inheritance and paid it all back. I had my mortgage offer in may once my credit file had updated and Halifax saw no defaults or missed payments as I made sure to always pay at least the minimum. 

As long as there are no defaults or negative events like ccj’s, bankruptcy or missed payments all they are looking for is a clear file. I make sure to check my Experian file at least once a week now just to make sure I’m still in a good place, even though I know it’s all fine now.

Don’t worry yourself about something that hasn’t happened yet, speak to your broker and show him your credit report, he will be able to put your mind at ease.

theartfullodger

Good luck, keep up the good work!

[Deleted User]

powerspowers said:

Well done on being honest with your husband, It’ll be better coming from you then him finding out via the mortgage application. I’d suggest being honest with the mortgage advisor as well (if it comes up) it’s likely they have come across this situation before. Stress the help you’ve had and emphasise how much covid caused you to struggle. And well done on getting help, stopping gambling and getting debt free- that’s a significant achievement. Good luck for next week 🤞

Thank you so much. Trying not to catastrophise about losing the house because mortgage application is rejected.