Would This Affect My Mortgage Application?

[Toomuchtooyoung01]

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

I think you’ll be fine. You’ve cleared it. It might depend on the lender - we had a mortgage broker who said some of them are more stringent than others, some just want to check you earn as much as you say you do and comfortably pay your bills, but others will go through your spending with a fine tooth comb. But I can’t imagine this would be a big issue.

I had a mortgage approved this year with about £200 on my credit card outstanding, but my broker said it was fine because it was clear I made regular payments to clear it above the minimum.

I know it’s a very stressful time though!!

I went into my overdraft every month when we got our mortgage for 5x earnings, obviously didn’t matter. But I paid it off every month and it was about £30

I work in financial services...that shouldn't be anything to worry about OP.

Had you been consistently in and out of your overdraft over several months, running up unauthorised overdraft fees through irresponsible spending, that might be a problem, but considering it was a one-off error and quickly cleared I'd say it was very unlikely they'll even blink.

I myself was consistently using a £1,600 authorised overdraft every month when I secured a 90% mortgage 4 years ago. It was a condition to clear it before completion, but it didn't harm my application.

Good luck with the move!

I was well overdrawn (but had money in other accounts). They didn’t care.

Is it an agreed overdraft? If so then it's fine, if not then potentially an issue

As mentioned, as I’m a SAHM my bank account is generally empty other than when I transfer myself something from the joint account, all of our spending is from the joint account/OH’s account. I have often been like £20 in my overdraft but it’s the agreed overdraft (which is a limit of £1000) nothing unauthorised, and just this being £150 in the overdraft thing is really worrying me.

@Toomuchtooyoung01

As mentioned, as I’m a SAHM my bank account is generally empty other than when I transfer myself something from the joint account, all of our spending is from the joint account/OH’s account. I have often been like £20 in my overdraft but it’s the agreed overdraft (which is a limit of £1000) nothing unauthorised, and just this being £150 in the overdraft thing is really worrying me.

Really wouldn't worry

If you've got your mortgage in principle. Then it's ok. They've agreed it.

I'm also buying a house and the stress of doing so is unbelievable!

I was in my overdraft £1500 (it's interest free so I never feel inclined to clear it) when I got my mortgage, didn't raise any kind of problem at all.

Lol at everyone panicking. I hands. £10k of debt when taking out my mortgage. They’d don’t care if it’s paid back or you can pay it back! If they ask and you can justify why it happened, same as a late payment, then it’s fine in isolation

I doubt it. We were approved with me being £300 into my overdraft, husband just bought a new car and has a small loan. No issues! We had a great mortgage advisor and we’re borrowing about half what we could.

@Nocutenamesleft

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.

Depends if you use a specialist lender. I've just been approved for a mortgage with debt, defaults and cards that have defaulted with a debt management company (The mortgage will clear all the debt)