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Savings history for mortgage

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  • 16-06-2013 5:59pm
    #1
    Asporadic
    Registered Users Posts: 65 ✭✭


    Currently saving money every week with credit union (usually 170ish or whatever I can afford) but I got thinking.

    All going well I should be applying for my for first mortgage in the next year or so.

    Would I better off saving in a bank until then, just to build up a savings history. Or will they just as happily accept seeing my credit union book/receipts? I mean you'd think it wouldnt make any odds either way... but I can just imagine waiting until the time and then been told they wont accept that and then kicking myself for not moving when I had the chance.

    Any advice would be great.


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    #2
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Will make no difference to lender where you save once you can show regular monthly savings equal or greater than the stress tested mortgage repayment. For example if stress tested repayment is €1,000 per month you need to show repayment capacity by either saving €1,000 per month or it can be a combination of savings and rent.

    You also need to ensure you pay rent by standing order or direct debit as they will not accept cash payments. Keep your current account squeaky clean with no unpaid direct debits or using an overdraft.


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    #3
    Asporadic
    Registered Users Posts: 65 ✭✭Asporadic


    Just another thought. Last one, promise :P

    Currently the wife saves half her wage each week with the post office, while I save whatever I can spare in CU. Would we be better combining the cash each week and putting it all into a single account? Or keep going the way we are going?

    I kinda figured it would be better having our savings separate to build up good credit in both our names.


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    #4
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,711 Mod ✭✭✭✭Henry Ford III


    Makes no difference. Keep going as you are. Good luck.


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    #5
    hfallada
    Closed Accounts Posts: 4,180 ✭✭✭hfallada


    OP why do you use the post office and Credit union when they offer the lowest rates in Ireland for savings? You get about 2.5% saving it in a bank


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    #6
    Asporadic
    Registered Users Posts: 65 ✭✭Asporadic


    hfallada wrote: »
    OP why do you use the post office and Credit union when they offer the lowest rates in Ireland for savings? You get about 2.5% saving it in a bank

    Im just a lay person when it comes to this kinda thing, and I could well be completely wrong, but banks just dont seem like the safest place to be keeping large amounts of money. All the time we are hearing about banks on the verge of collapse, needing bailouts, banks shutting down shop/been sold to another bank, will another EU bank copy cyprus etc. Rather just take my chances with the credit union. They seem to have less drama going on and seem to be a bit safer in my uneducated opinion :)


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