Getting a mortgage

kellyj77

Apologies if this information is available elsewhere on the site however I have two quick questions.

Firstly I believe you need to clean up your expenditure, how far back do the banks look when looking at your bank statements?

Secondly when looking at repayment abilities do the banks consider money I pay my parents each month in rent or is it only official rent to a third party on top of normal savings each month that they will consider?

Little Miss Cutie

Hi Kelly77,

6 months for bank statements although keep in mind if you have an serious issues in the last it will be on your ICB report ( for 3 years I think).

If you are thinking of applying, it is worth getting a copy of your ICB report. You can order it online for about €6.

My understanding is rent to parents is considered but it needs to be visibly paid each month ( ie direct debit/ online trf) and be a consistent amount.

Best of luck with your application

kellyj77

Little Miss Cutie wrote: »

Hi Kelly77,

6 months for bank statements although keep in mind if you have an serious issues in the last it will be on your ICB report ( for 3 years I think).

If you are thinking of applying, it is worth getting a copy of your ICB report. You can order it online for about €6.

My understanding is rent to parents is considered but it needs to be visibly paid each month ( ie direct debit/ online trf) and be a consistent amount.

Best of luck with your application

Thanks for that. On the latter point I was thinking of paying the parents a lump sum now for say 6 or 7 months rent and then saving the money I'd pay them in rent. Would this look better as I could probably save 1000-1500 each month as opposed 500 rent and 500-1000 savings each month? Also does it look more financially if you save the exact same each month as opposed to fluctuating amounts?

orchidsrpretty

Better to show you can make set payments every month instead of lump sum payments. I would continue to pay your parents rent and save.

kellyj77

orchidsrpretty wrote: »

Better to show you can make set payments every month instead of lump sum payments. I would continue to pay your parents rent and save.

Thanks very much

Little Miss Cutie

kellyj77 wrote: »

Also does it look more financially if you save the exact same each month as opposed to fluctuating amounts?

Without a doubt, it is beat to show consistency each month. It shows you can live without that amount each month which is exactly what the bank want to see

m.anna

kellyj77 wrote: »

Apologies if this information is available elsewhere on the site however I have two quick questions.

Firstly I believe you need to clean up your expenditure, how far back do the banks look when looking at your bank statements?

Secondly when looking at repayment abilities do the banks consider money I pay my parents each month in rent or is it only official rent to a third party on top of normal savings each month that they will consider?

I just applied for mortgage this week and they told me it's better to show monthly payments. I live with my partner in his house and I don't pay rent (I pay all the bills, food etc but it does not show as "rent" payments) but I have regular monthly savings. Any payments should be from the bank account as it's easier for them to track them and for you to show you can afford repayments.

They want 6 months statements from regular account and any savings accounts you may have. Also credit card statement.

Good luck