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Mortgage Application - Holidays

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  • 25-05-2014 5:16pm
    #1
    ThunbergsAreGo
    Registered Users Posts: 10,399 ✭✭✭✭


    Quick query as we are getting ready to apply for a mortgage.

    We have been saving approx 900 euro on top of 950 rent each month, putting it into a joint savings account. We were looking through the current account and noticed we were in a deficit for the last 6 months or so, mostly due to paying a "once in a lifetime" holiday we are due to on in August which we took from our current account (not the joint account). We figured the time to go was now without a mortgage

    Would this be an acceptable reason for the drop in the current account?


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    #2
    No Pants
    Closed Accounts Posts: 3,347 ✭✭✭No Pants


    Are you saying that you had an unauthorised overdraft on your current account for six months?


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    #3
    ThunbergsAreGo
    Registered Users Posts: 10,399 ✭✭✭✭ThunbergsAreGo


    No Pants wrote: »
    Are you saying that you had an unauthorised overdraft on your current account for six months?

    No sorry badly phrased, no ovrdrafts etc

    As an example, had 22k in a current account and no savings account, now have 4k in a joint savings account and 19.5k in a current account as spent money on a holiday.


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    #4
    alias no.9
    Registered Users Posts: 6,310 ✭✭✭alias no.9


    If you have an authorised overdraft facility, it shouldn't be much of an issue as long as you get it to the same(ish) net position at the time of application. If it's unauthorised, it could be a big boo boo.


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    #5
    alias no.9
    Registered Users Posts: 6,310 ✭✭✭alias no.9


    naughtb4 wrote: »
    No sorry badly phrased, no ovrdrafts etc

    As an example, had 22k in a current account and no savings account, now have 4k in a joint savings account and 19.5k in a current account as spent money on a holiday.

    That's going to be viewed as 1.5k net savings over the period.


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    #6
    The_Morrigan
    Registered Users Posts: 9,368 ✭✭✭The_Morrigan


    Why do you have 20k in a current account?


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    #7
    ThunbergsAreGo
    Registered Users Posts: 10,399 ✭✭✭✭ThunbergsAreGo


    The_Morrigan wrote: »
    Why do you have 20k in a current account?

    I dont, it was just an example


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    #8
    The_Morrigan
    Registered Users Posts: 9,368 ✭✭✭The_Morrigan


    naughtb4 wrote: »
    I dont, it was just an example

    Try giving the forum users the actual scenario, if you wish to get an informed opinion or advice.


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    #9
    ThunbergsAreGo
    Registered Users Posts: 10,399 ✭✭✭✭ThunbergsAreGo


    The_Morrigan wrote: »
    Try giving the forum users the actual scenario, if you wish to get an informed opinion or advice.

    i think Alias no9 has answered it already above.

    Didnt think the actual figures involved would make a difference to any scenario.

    My savings has stayed constant
    Joint savings have increased 6k
    Other half gone down by 2k, including 2.5k spent on holiday
    Rent 950


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    #10
    spockety
    Moderators, Education Moderators Posts: 5,468 Mod ✭✭✭✭spockety


    Holiday will be viewed as discretionary or lifestyle spend and will be deducted from savings to give the true picture. The year leading up to a mortgage application is squeaky bum time, and you may find you should have been squeakier.


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    #11
    ThunbergsAreGo
    Registered Users Posts: 10,399 ✭✭✭✭ThunbergsAreGo


    spockety wrote: »
    Holiday will be viewed as discretionary or lifestyle spend and will be deducted from savings to give the true picture. The year leading up to a mortgage application is squeaky bum time, and you may find you should have been squeakier.

    Ah yeah do appreciate and is lesson learned. I guess at the time we really didn't think we'd be applying this early.


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