Overdraft - mortgage application

[Starfish0]

I have an appointment for a mortgage application next week.
Since birth of ds2 three months ago I have been going into my overdraft (arranged) by 200-300 each month. No where near the limit and clear it when I’m paid.
I’m back at work soon, no other debt other than a small personal loan and dp and I have no history of debt problems everything up to date. Could this overdraft use impact on the banks decision to lend.
I’m worried in case they refuse on the basis of the overdraft use.

The fact that you have two dependants is more likely to have an impact. They will look at your overall use of credit when making a decision so the overdraft use will be considered but so will minimal personal debt overall as well as obviously your income. Are you on mat leave or working?

I was regularly into my overdraft before we applied for the mortgage, but I made sure there was at least 3 months "clean" as it were, where I wasn't. They only asked for 3 months worth of bank statements. I would ask a broker?

Mat leave for another three months then back to work.
I have a small personal loan for my car but payments due to finish in eight months and only 100 per month so not huge amounts.

..

Maternity pay would usually affect affordability. The overdraft in itself wouldn't prevent lending as it's authorised borrowing you're entitled to use, but they are likely to ask for bank statements and review your use of it, then make a decision based on the whole picture.

Overdrafts are more of a concern than loans and credit cards. Like pp said, have a minimum of three months without using it before you apply.

Are they 2ndAugust?
The problem is need to apply now if we want to buy this house.

Dp had a massive overdraft he was practically never out of when we got our mortgage they never even mentioned it.

Childcare however.. took a massive chunk out of what theyd lend us.

We've just applied to remortgage and they have reduced our affordability because I went £35 into an arranged overdraft 5 weeks ago apparently if I'd needed to use it at all I cant afford my lifestyle and so reduces what they'll lend us.

Maternity pay won't affect your application if you are returning to your old job with the same pay. That overdraft you are in every month, will however, have a massive impact with a lot of lenders as you are living beyond your means. Two children will also impact.

The broker we used advised us to have three months clear before applying, which we did. He told us that it appears to some lenders like you can’t live within your means if you’re in your overdraft regularly.

Speak to a broker. It may be an issue, it may not but best to get some advice.