Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Would This Affect My Mortgage Application?

36 replies

Toomuchtooyoung01 · 30/09/2021 18:34

Feeling anxious about this - would being in my overdraft by about £150 mean our mortgage application could be rejected?

OP posts:
myadhdusername · 30/09/2021 18:36

I can’t answer your question OP but I am also waiting on a mortgage decision so here for to hand hold. It’s so stressful. We’ve already been declined once.

icmeler · 30/09/2021 18:38

I would imagine so - they'll probably think "she can't afford to clear £150 so not worth the risk"

Clear it

Drywhitefruitycidergin · 30/09/2021 18:38

It was 15 years ago so things have probably changed....but with my first mortgage it was a condition that I paid off my £400 credit card bill before completion.

lovelyupnorth · 30/09/2021 18:39

Overdrafts don’t help towards credit score. That amount shouldn’t make any difference.

Overthebow · 30/09/2021 18:39

It would depend why you’re in your overdraft. If you have money elsewhere and you just happen to have gone into your overdraft on one account then it’ll likely be fine, but if you’re in overdraft because you’ve run out of money then ot may be a problem.

TinySaltLick · 30/09/2021 18:41

It is based on many factors, it is impossible to say without the full details of the affordability. However, assuming everything else is in order - simply going into your overdraft won't automatically reject an application, unless it is the tip of a set of circumstances which suggest you couldn't consistently make the payments. Given it is such a small amount it probably won't make a difference.

Original poster
Toomuchtooyoung01 · 30/09/2021 18:43

So we have other accounts with money in and I basically forgot to transfer some into my account hence why I went £150 into my overdraft. We have an agreement in principle and no debts etc so do you think it’ll be ok? Quite an anxious person so really stressing over it.

OP posts:
Changemaname1 · 30/09/2021 18:43

How would they know ? Or do you mean on the bank statements you have sent them you were showing as in overdraft ?

TinySaltLick · 30/09/2021 18:44

Based on your second post, no I don't think it will make the slightest difference

I'm not a mortgage broker or underwriter though

FrownedUpon · 30/09/2021 18:47

Well if they see it on your bank statement, they will think you’re already living above your means and may not be able to make the mortgage payments, so yes it may affect your application.

PicsInRed · 30/09/2021 18:47

Clear it AND declare it as debt, adding that it's cleared, and the date of clearance.

If you don't declare it, you could be rejected for undeclared debt (credit reporting comes with a delay, so the bank may not see that it's been cleared from looking at the latest report).

Original poster
Toomuchtooyoung01 · 30/09/2021 18:47

Yeah I have to send them bank statements and 3 months ago I was £150 overdrawn. I’m a SAHM so my bank account is always pretty empty and we obviously pay our current mortgage and bills from OH’s contributions to the joint account. Really stressing that I have fucked it up.

OP posts:
ThreeLittleDots · 30/09/2021 18:49

It depends on the LTV band. If you're putting down a bigger deposit it matters a great deal less than if the bank will own 90% of the house.

Overthebow · 30/09/2021 18:50

If theyve seen you gave money elsewhere it’ll probably be fine. If they haven’t seen your other accounts with money in you could send those statements too to show them.

Original poster
Toomuchtooyoung01 · 30/09/2021 18:51

Yeah we are putting down a large deposit and are also increasing our term so our repayments are less than they currently are. We can afford our current mortgage/have never missed a payment but we go without an awful lot so basically just want to live a bit more.

OP posts:
GertrudePerkinsPaperyThing · 30/09/2021 18:52

I’m sure it’ll be fine! They usually just say to clear it.

CreamFirstThenJamOnTop · 30/09/2021 18:52

It will probably be fine.
I max out my overdraft every month and DH often dips into his but it wasn’t mentioned on our mortgage application.

Original poster
Toomuchtooyoung01 · 30/09/2021 18:53

Yeah it is cleared now, it’s from 3 months ago but I’m worried they will reject our application now???

OP posts:
DragonMamma · 30/09/2021 18:57

It hasn’t ever held me back!

Nocutenamesleft · 30/09/2021 19:06

Yes. So can having credit cards.

The banks hate any kind of outstanding money.

They’ll say oh of course you can. But reject it once it gets to mortgage in principle phase.

It’s rubbish.

Nocutenamesleft · 30/09/2021 19:07

@Toomuchtooyoung01

Yeah it is cleared now, it’s from 3 months ago but I’m worried they will reject our application now???
Oh. If it’s cleared now. The. I doubt it. It will come up on your credit score I’d imagine. But I doubt they’d reject it now.
PurBal · 30/09/2021 19:08

You’ll be fine. DH had a default and was no problem.

Original poster
Toomuchtooyoung01 · 30/09/2021 19:10

It’s in the agreed overdraft, if it makes any difference?
Sorry I’m going to be honest I’m so anxious I’m really stressing about it, the whole move has been a complete saga and I’m terrified that I’ve ruined it by being in my overdraft

OP posts:
user1473878824 · 30/09/2021 19:11

@lovelyupnorth

Overdrafts don’t help towards credit score. That amount shouldn’t make any difference.
Oh bugger, really? I thought they did as long as you weren’t in them as the amount you’re allowed to have is controlled by your credit score, no?
MagnoliaXYZ · 30/09/2021 19:12

I was in my overdraft by about £1500 with credit cards totalling about £5000 and loans of over £15000, sole applicant for my remortgage (buying out the shared equity bit of my house) and they never said anything. That was about a year ago. Got approved first time.