Can I Get a Mortgage with an Overdraft?

Overdraft lending isn't typically a dealbreaker for a mortgage application - but should you repay all your short-term debt before you apply? Find out with guidance from the accomplished brokerage teams at Revolution Finance Brokers.

About your mortgage

Error: Yearly income income must be between £1 and £10,000,000.

Error: Regular bonus must be between £1 and £10,000,000.

Based on your yearly income, you may be able to borrow:


Most lenders will let you borrow 4.5 times your annual salary so, as long as you have a standard 10% deposit, you should be able to borrow this much.


Depending on your personal circumstances, some lenders may let you borrow 5 times your salary.


Lenders usually cap the amount they lend at 5.5 times your salary, so it’s unlikely you’ll be able to borrow more than this.

This calculator is an estimation of how much you could borrow. If you’re ready to take out a mortgage, speak to a Revolution brokers to see what options are available.

Can I Get a Mortgage with an Overdraft?

Overdrafts are a normal part of everyday banking - but relying on an overdraft can cause an issue when applying for a mortgage.

Many of our clients seek professional help having been rejected for a mortgage due to their overdraft usage issues.

In this guide, the Revolution Brokers team summarises the relationship between overdrafts and mortgages - and how to ensure you get the most competitive home loan available.

For more assistance, or for bespoke advice to help you secure the mortgage borrowing you need, give us a call on 0330 304 3040, or email the team at

Can I Get a UK Mortgage if I Also Have an Overdraft?

You can, yes. Many people have an overdraft facility, which is not usually any problem when applying for a mortgage.

Lenders will assess your application based on affordability - which means that an extensive overdraft facility is only a problem if your lender is concerned that you are overstretching yourself and cannot comfortably afford the mortgage repayments.

Does Having an Agreed Overdraft Impact my Mortgage Application?

Not specifically, no. If you have an agreed overdraft on your account, particularly if you don't use it, it won't significantly impact your mortgage application.

What Can I Do If I have been Rejected for a Mortgage Due to my Overdraft Account?

If you have a substantial overdraft facility and are in debt, you might find that some high street lenders with strict policies cannot accept your application.

In this scenario, it is essential to identify the reasons behind the rejection:

  • How significant is your overdraft?
  • How often are you in debt to your bank?
  • How many overdraft facilities do you have?
  • Have you used unapproved overdraft facilities?

A lot depends on the reason for the rejection. The most likely scenario is that your use of an overdraft is relatively extensive and has given the lender reason to reject your application on the grounds of affordability.

Can Using an Overdraft Make a Difference to a Mortgage Application?

It can do, and many people have overdraft facilities on one or more bank accounts, even if they don't use them regularly.

The relevance depends on the lender and how they view overdrafts. If you do use an overdraft extensively, and to the limit, it might be that you don't meet affordability criteria, or have a high debt to income ratio.

There are, however, plenty of lenders who are not overly concerned about overdraft usage and will take a more flexible approach to assess your application.

If I Have an Overdraft Facility I Never Use will It Impact my Mortgage?

Where you have an unused facility, it is worth closing it before applying for a mortgage, if you have any uncertainty about whether your mortgage lender approves applicants with other debts.

This applies to credit cards too, since the lender will include every debt or potential debt in their calculations.

For example, if you have a credit card and an overdraft, and have a total of £10,000 debt, your monthly payments might be something like 3% of that total - so £300 per month.

A mortgage lender will deduct this debt repayment expense from your monthly income to calculate whether you can afford the repayments. If you can clear debts before applying, it can strengthen your application.

Can I Get a Mortgage if I Have a Student Overdraft Account?

You can, and many lenders are happy to make a mortgage offer to applicants with a student overdraft.

Lenders will probably include this type of account in the affordability assessment, so might limit the amount you can borrow, but is unlikely to prevent you from finding a mortgage.

How Does an Unauthorised Overdraft Report Impact my Mortgage Eligibility?

Using an unauthorised overdraft can cause an issue - whether you have used extra funds from your account that exceed your approved overdraft limit, or have gone overdrawn on an account which does not have a facility in place.

If this is a one-off, some lenders will disregard it as an isolated incident, and will usually ask for three months or more of bank statements to check that it isn't something that happens often.

Should you be concerned about overdraft usage or penalties for unauthorised overdrafts appearing on a mortgage application, give us a call, and we'll run through the best options.

Can I Use Funds from a Bank Overdraft Towards a Deposit on a Mortgage?

Not usually, no - mortgage lenders have specific rules about where borrowers can source a deposit from, and very few will permit you to use unsecured borrowing to pay any part of a mortgage deposit.

Professional Support with Mortgage Applications and Overdrafts

Suppose you're concerned about any form of borrowing and the impact on your mortgage eligibility. In that case, the first step is to consult an independent broker who can assess your application and ensure you apply to the right lenders who will be able to offer you funding.

Give the business loan broker team a call on 0330 304 3040, or email us at and we'll steer your mortgage application down the best route.

Why Revolution Brokers?
  • Whole of market brokers

  • Mortgage that suits you

  • On time customer support

Further Reading

Latest Blogs

10 Feb 2022
Do I Qualify for First-Time Buyer Status?

Do I Qualify for First-Time Buyer Status? Working out whether or not you are a first time buyer may seem obvious - but there are plenty of scenarios where your position isn't clear! Examples might include: New buyers who have inherited a property they rent out. Buy-to-let investors that have never purchased a residential hom..

26 Jan 2022
How Does a Remortgage Application Work?

Most homeowners know that remortgaging means switching a mortgage from an existing lender over to a new deal. However, the process isn't always obvious. If you're on a fixed-rate deal, you'll want to get ahead of the end of the term to avoid being shuffled onto a higher standard variable rate where your interest costs will undoubtedly ..

17 Dec 2021
Understanding Lender Risk on First-Time Buyer Mortgages

Finding a great mortgage as a first time buyer can feel like an uphill struggle, with a larger proportion of applicants being turned down than a year ago. Around 20% of first-time mortgage applicants are rejected, usually because of the lender risk associated with their loan. Today, Revolution Brokers explains the highest risk facto..

28 Oct 2021
Pros and Cons of First Time Buyer Buy to Let Mortgages

Investing in a rental property can be an excellent way to get onto the property ladder and earn an income. However, if you haven't owned a residence before, you might find that a mainstream bank will automatically turn you down for a buy to let mortgage. In today's guide, the Revolution Brokers team explains how you can become a ren..

12 Oct 2021
Mortgage Deposit Requirements for First-Time Buyers

Buying a home for the first time is a massive step - but the deposit is often a stumbling block for first-time buyers. It can take years to save a sufficient amount or be impossible, so there are several ways to approach the problem and get your foot onto the property ladder. From April 2021, the UK government launched the new mortg..

24 Jun 2021
Why Property Auction Finance is Booming!

There is little doubt that UK buyer confidence is at an all-time high. We've recapped previously in our blogs how property market growth and prices have soared over the last few months! As we head into summer, one key area of mortgage finance seems to be expanding rapidly: property auction finance. In this article, the Revolution..


Refer, Relax and get £50

If you refer a friend for a mortgage or any
type of finance you’ll both receive £25
each when their new application
successfully completes.

Know More!

We are proud
members of the:

FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

Ask the Mortgage Experts

Revolution Brokers understands that mortgages can be complex and confusing!

Ask us any question you might have, and one of our skilled consultants will come back to you as quickly as possible.