Friday, June 19, 2015

Should I pay my over draft off or leave it for emergancies?


I currently have a £1000 overdraft which I ve reduced from £2000 over the last few months.
Me and my partner are saving to buy a place together at the start of next month. I had planned originally to pay off my overdraft, but my mum has advised me to keep it at £1000. She thinks I should get my balance to £0 and then just not use it, that way when we buy our place I ll have £1000 available for emergancies, which is obviously good advice, but if I pay it off I can always extend it again if I need to.
Will having an overdratft effect my ability to get a mortgage?
Is it better to keep it for emergancies or to pay it off in full?

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