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    • Bea1237
    • By Bea1237 15th Jan 20, 12:17 AM
    • 4Posts
    • 0Thanks
    Free overdraft and applying for a mortgage
    • #1
    • 15th Jan 20, 12:17 AM
    Free overdraft and applying for a mortgage 15th Jan 20 at 12:17 AM
    First time buyer here. I will be going through the process of a mortgage at the end of the year. I currently have a bank account from when I was a student which has a 1800 0% overdraft limit. Over the past 4 months I have dipped into this due to working on temporary contract until I started my permanent job before Christmas. The reasons for Falling into the account is due to bills, swapping from permanent to temp and then also saving for my deposit. Whenever I am paid I try to put as close to 50% of what is remaining from my pay after bills have gone out into saving for the deposit.
    When I have dipped into my overdraft it can be anything from
    150-1000 (had a bit of bad luck too with the car!) Each month I have been slowly paying this off and drawing out a bit of money to live off per month to prevent me from over spending.
    The full over draft will be paid on the 15th Feb 2020, after working out my finances again this should put my account +360.
    Because I have been in my overdraft will this affect the mortgage process, I have never exceeded to limit and it is 0% no interest charged at all. It's just been a bad few months, I was never in the over draft once as a student!!
    Any help would be appreciated thank you
Page 1
    • foxy-stoat
    • By foxy-stoat 15th Jan 20, 9:44 AM
    • 5,696 Posts
    • 3,533 Thanks
    • #2
    • 15th Jan 20, 9:44 AM
    • #2
    • 15th Jan 20, 9:44 AM
    It may have an effect. Once paid off I would cancel it so you cant go into it again.

    The more deposit you have the easier your mortgage will be.
    • Bea1237
    • By Bea1237 18th Jan 20, 9:37 AM
    • 4 Posts
    • 0 Thanks
    • #3
    • 18th Jan 20, 9:37 AM
    • #3
    • 18th Jan 20, 9:37 AM
    Thanks for your reply. Once I have saved up, in April we will have 17k and we have been looking mostly at 150-160k houses giving us an 11-12% deposit. Whilst we are looking we are still going to keep adding the deposit so it could be a little bit more.
    • MovingForwards
    • By MovingForwards 18th Jan 20, 11:32 AM
    • 3,019 Posts
    • 3,625 Thanks
    • #4
    • 18th Jan 20, 11:32 AM
    • #4
    • 18th Jan 20, 11:32 AM
    Are you saving as well as dipping into your O/D?

    If so, stop the saving and clear your O/D as it can be recalled whenever the bank wants to.
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