Question on savings record for deposit

witnessmenow

Hey all,

Myself and my Girlfriend have a CU account we are using for savings.

In the future we would like buy/purchase a house and this would be the account we would use as proof of savings.

I have two questions (i think, they are both related anyways)

Most of the time we deposit a good bit more a month than the kind of mortgage repayments we would be looking to have (on top of the fact we pay rent)

But we also use the money in this account for other more once off expenditures (A car, holidays etc).

So my first question is, will this look bad on an application that we are taking money out of the savings account? Like over the course of 12 months if you took (money in - money out)/12 you would get a figure bigger than monthly mortgage payments but I'm sitll not sure if it looks bad.

Second question is again very similar, my GF is off work on sick leave at the moment, she will be back to work shortly, but she does not get paid sick pay from her company. So for this month give or take we will only have my pay. I have put a small amount into the savings account, but its very possible that before the next pay day we might need to use some of that.

Do you know if that will break the cycle of savings? Like will we have set the 6 months saving counter back to 0?

Thanks in advance

SBarrett

Yes, the banks do look at withdrawals from your savings account into consideration, so do not take money out of that account if it can be helped. The only thing they allow is for a booking deposit on a property. Otherwise they will average out your savings.

There is nothing you can do about your girlfriend being sick. When you submit your mortgage application, provide an explanation as to why the savings dropped, due to her being sick. If she has fully recovered, explain that too.


Steven

phormium

Open a second account and use it to save for regular bills and keep the savings one just for savings.