Mortgage application.

[LisaDav]

Hello,

I'm looking at buying my first home. I've regularly gone in and out my overdraft the last 3 months. It's only £50, but I'm worried my mortgage offer will be declined! has anyone else been in this situation?

TIA- Lisa x

I very much doubt it will be a problem.

Depends, we didn't have to show our bank statements. If we did, they'd have seen my husband's large overdraft constantly maxed and I doubt we would have got a mortgage

It's about showing you can manage money within agreed limits so in your agreed overdraft is fine (as long as you meet the overall affordability tests). What is a problem is exceeding an overdraft limit or going overdrawn without an agreed overdraft x

My husband regularly went in and out of his overdraft before we bought our house and our application was accepted first time so it really shouldn't be a problem.

When I got my mortgage last year I had to send three months bank statements and they went through it whilst on the phone to me with a fine toothcomb. I was borrowing over my official 'max' as ExH was paying mortgage amount every month (all amicable so no chance of default) but they had to make sure that if he didn't pay that I could afford to so it was all questions like "what is this regular payment of £60 for? Could you stop that easily if you needed to?"

To someone who keeps her financial information close to her chest it felt very intrusive but I guess that they have so many people defaulting that they have to apply the strict rules to everyone

We use our overdraft every month and have done for years. Never had a problem with a mortgage.

I can recommend a fantastic broker if you need one (not me or anything to do with me, he just sorts my mortgage out!) He's a great bloke - PM if you need some details.

We had been using our overdraft for years before getting our mortgage, and had no issues. It was significantly more than £50 too!

Thanks everyone! I'm a total worrier! My partner never goes into his OD, but as it's my first one, it's just a little bit nerve racking!!

Should find out in a couple of days so fingers crossed!!!

You would have thought so but I think not - one of my children last year was worried about this; they did ask for their bank statements but as they met the income multiple etc requirements it all went through fine.

I was constantly in my overdraft for years and got accepted easily. I also had about 5k credit card debt but they said as long as I agreed that I’d be paying it back ASAP it was fine. My mortgage advisor said that they wouldn’t check afterwards that I had! And they didn’t. I don’t think you need to worry

We usually have to give 1-3 months' bank statements. If your partner never needs to use his overdraft and you always have to use yours perhaps he could help you out?

It should be fine as long as you pass the affordability. I had a massive overdraft when we got our mortgage a few years ago and still got approved

I really appreciate everyone's comment on this. I worry about the smallest things, and this is a big thing for me!!
The mortgage company came back today to ask a few more questions, so fingers crossed it gets accepted in the next couple of days!!!

OP you can check your own credit record for free via Clear Score, Noddle, Equifax etc so worthwhile doing it.

I work at a mortgage brokers and we've never had this flag up as an issue by a lender. They do look over the bank statements throughly and may ask questions about spending/ regular outgoings/payments as PP said but this shouldn't be an issue providing an honest explanation is given.

I still had my 1.5k graduate overdraft and that wasn't a problem. They only seemed to use our bank statements to verify income.

You need to be careful not to agree to pay too much for a property because mortgage surveyors are increasingly downvaluing houses according to the BBC.
www.bbc.co.uk/news/business-44202542