Overdraft use

Residential (Re-mortgage, Product transfer, Porting)

I'm looking to remortgage as my fixed term period is coming up. I have a couple of options: stick with the current lender for another fixed term or remortgage for a better rate.

My partner is leaning towards a new lender (they're in a better financial state than me- low overdraft and low credit card debt). I'm worried about my overdraft use potentially being a blocker by an affordability check.

I have 2 bank accounts, both with regular overdraft use- one of which was maxed to £2k (but now down to £1k) the other is £500 that I go into almost each month. So overdraft debt over the 2 accounts is around £1,500 owed as it stands, but reducing.

In the past year I've got a new job and earn quite a bit more money since we first got our initial mortgage. My credit score is fair, I don't go over the limits and have not missed credit card payment (1 credit card- £4.5k total on it).

Would my situation potentially cause a new lender to reject our remortgage application as it stands? If I can pay off the remaining overdraft before the affordability check (family loan) would that help, or would they look past this to see the regular use as a negative factor that could cause a refusal?

Posted Feb 19, 2025, 12:23 PM UTC

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