First Direct Overdrafts

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MF2015
MF2015 Posts: 333 Forumite
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in Mortgages & endowments
We’re planning on applying for a First Direct mortgage, we have been current account customers for years.

We have been going into our arranged overdrafts at the end of the month as we have been finishing off building an extension and didn’t want to borrow money or stop our fairly large pension payments.

Will using our arranged overdrafts affect an application?

The build is finished now and we won’t need to go into them, they are for 2 x £500 and 1 x £250. Is it best to get rid of them or will it make no difference?

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  • MF2015
    MF2015 Posts: 333 Forumite
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    Can anyone help please?
  • kingstreet
    kingstreet Posts: 38,765 Forumite
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    It's a direct-only lender, so the only responses you'll get are from those who have recently been in a similar position.

    As a result, you may find it takes longer than it would for a NatWest or Halifax case where you'll get broker input.
    I am a mortgage broker. 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.
  • MF2015
    MF2015 Posts: 333 Forumite
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    kingstreet wrote: »
    It's a direct-only lender, so the only responses you'll get are from those who have recently been in a similar position.

    As a result, you may find it takes longer than it would for a NatWest or Halifax case where you'll get broker input.

    Ahh, didn’t know that, thanks for letting me know.

    How would a high street lender view this please?
  • kingstreet
    kingstreet Posts: 38,765 Forumite
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    Most wouldn't be bothered.
    I am a mortgage broker. 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.
  • Giddypip
    Giddypip Posts: 130 Forumite
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    I've just applied for a FD mortgage and have a current account with FD, I have dipped into my overdraft most months recently (£250 limit), but received an AIP with no problems. I have a telephone appointment with someone this evening to move things along, I'll let you know if any problems occur.
  • MF2015
    MF2015 Posts: 333 Forumite
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    Giddypip wrote: »
    I've just applied for a FD mortgage and have a current account with FD, I have dipped into my overdraft most months recently (£250 limit), but received an AIP with no problems. I have a telephone appointment with someone this evening to move things along, I'll let you know if any problems occur.

    That would be great, thanks.

    The bank balance should build up nicely over the next few months but I’d like to lock in the rate now for September and get the ball rolling as I’ve heard they can take a while.
  • MF2015
    MF2015 Posts: 333 Forumite
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    kingstreet wrote: »
    Most wouldn't be bothered.

    Thanks for the reply, much appreciated.
  • Giddypip
    Giddypip Posts: 130 Forumite
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    Phone call with mortgage broker last night went well. Offered a good rate on a five year fix. Paperwork to be sent out within the next five working days to with full details, t&c's etc to be signed and returned if agreeable.



    It's never confirmed till money in the bank but no problems so far (they never even mentioned the overdraft) :j
  • MF2015
    MF2015 Posts: 333 Forumite
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    Giddypip wrote: »
    Phone call with mortgage broker last night went well. Offered a good rate on a five year fix. Paperwork to be sent out within the next five working days to with full details, t&c's etc to be signed and returned if agreeable.



    It's never confirmed till money in the bank but no problems so far (they never even mentioned the overdraft) :j

    Thanks for the update. I’m going to give them a call tonight.
  • Giddypip
    Giddypip Posts: 130 Forumite
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    My remortgage completed today. A smooth process from start to finish. No problems with overdraft or other borrowing on record.
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