Many UK banks have changed their overdraft fee structures in response to regulatory guidance, aiming to make fees clearer and fairer. Fixed daily or monthly fees were replaced with a single annual interest rate for both arranged and unarranged overdrafts. For mortgage applications, this change means that it might be easier for both applicants and lenders to understand the cost and impact of overdrafts. If you incur overdraft interest frequently, it could be viewed as a recurring expense, which might factor into affordability calculations. However, the primary concern for mortgage lenders remains the overall management of your finances, not just the overdraft fees per se.