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when applying for a mortgage.....

(6 Posts)
cookoos Mon 24-Nov-14 23:24:40

.... would it go against you if you had been overdrawn in the last few months or got a bit of money on a credit card?

DP and i want to sell our property (we have a 2bed, would like a 3bed & something with a bit of a garden) but we have nipped in the overdraft a few times.... only by about up to about £400 max.
i also have £1500 on a 0% credit card. no payments on mortgage/utilities etc have ever been missed. we have savings but never think its worth taking money out of an ISA to cover going a few hundred quid overdrawn when it gets paid back on payday anyway. also should i pay the £1500 on the credit card off before applying for a bigger mortgage even if it is 0%?

sorry about the stupid questions & rambling....any advice greatly appreciated!

peskyprolapse Tue 25-Nov-14 00:31:55

Depends. Do you earn £90k or £20k? Do you have £30k savings or £150k? Are you borrowing £50k or £600k? What are your other outgoings? Do you have triplets in nursery? Or another house to pay for? Huge car finance?

For someone on an average salary borrowing an average amount I cant imagine it would make much difference.

WantToGoingTo Tue 25-Nov-14 07:57:24

Some borrowing can work in your favour - e.g. credit cards, store cards etc, if payments are kept up it improves your credit rating by showing that you are responsible to lend money to. Not sure about overdraft, but if it is only £400 and always paid back I can't see that it would be a problem. But like above, it depends on the bigger picture; your other financial responsibilities, how much you want to borrow etc.

Madamecastafiore Tue 25-Nov-14 08:03:09

We had to pay off credit card debt before final remortgage offer and it was for no more than previous mortgage and DH is a high earner and we have a fair amount of savings. I am SAHM and any debt I had had to be declared and paid off even though I am not on the mortgage.

Banks are really getting tougher on borrowers and I would do everything possible to clear outstanding debt before thinking about approaching them.

Juno213 Tue 25-Nov-14 17:41:37

We went through a broker. We had about £500 on a credit card and had missed a payment in the last year. We were upfront with the broker and he didn't think it would be a problem. Mortgage got approved pretty quickly.

nothappymummy2014 Tue 25-Nov-14 18:48:38

We recently got a mortgage offer with Nationwide (remortgage) with overdraft and credit cards. The amount we are borrowing is not huge £95k and is about twice our income. Our mortgage is expected to complete on Friday.

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