Overdraft limit and getting mortgage

steven141

I currently have a £5000 overdraft on my longest standing account. I never use this and don’t need it but I’ve not removed it due to the fact that I read that it can show badly on my credit file like the bank has removed it. 

I just want to ask if it really is seen like this? Also I am planning to apply for a mortgage in the near future so don’t want that to affect how much I can borrow.

Any advice would be appreciated. 

Thanks

Hoenir

No impact at all. Lenders will only be interested in what you are actually utilising at the time of application. 

penners324

I'd remove it. Lenders can also see the overdraft negatively. It's a line of credit that's available to be used.

Hoenir

penners324 said:

I'd remove it. Lenders can also see the overdraft negatively. It's a line of credit that's available to be used.

A lender cannot stop someone getting a line of credit the day after though. That's why it's historic money management that's important. Says a lot about the applicant. 

chanz4

i have x2 250 od with halifax, never used they didnt care

JustMe18

No, they don;t really care, I have Lloyd bank and because  I don't use it, can't even see it on the bank statement