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Deposit for mortgage

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  • 26-08-2015 4:08pm
    #1
    dearg lady
    Closed Accounts Posts: 2,091 ✭✭✭


    Slightly silly question, but perhaps someone might have experience.

    Let's say I save €1,000 every month into my deposit savings account. One month I put €1,500, thinking I won't need the €500. I realise I do need the €500,and withdraw it. When actually applying for a mortgage will the bank look poorly on my withdrawing from my savings, even though I still saved the usual €1,000 in the month.


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    #2
    eezipc
    Closed Accounts Posts: 534 ✭✭✭eezipc


    PTSB will because I did the same thing and he did not like it at all.
    I queried this and he said it can show a lack of "judgement regarding financial matters".
    If you think you need it the money, you are better off not putting it into the savings account at all.


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    #3
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 51,688 Mod ✭✭✭✭Stheno


    I doubt it if it's a one off and you are able to show consistent savings


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    #4
    dearg lady
    Closed Accounts Posts: 2,091 ✭✭✭dearg lady


    eezipc wrote: »
    it can show a lack of "judgement regarding financial matters".

    This is what I'm afraid of! I'm not sure what to do!


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    #5
    CelticRambler
    Registered Users Posts: 6,831 ✭✭✭CelticRambler


    Open a second savings account. You put 1000 a month into the "house deposit" account to prove that you can afford it, and you don't touch it, no matter what. Then work out your typical monthly spend and set that as the maximum on your current account. Every time you go over, put the extra into your second savings account (some banks will do this for you automatically).

    Psychologically, you won't want to take anything out of that one either, but if you really have to, it won't affect the "house deposit" balance. When the time comes for making a mortgage application, you can tell them that's the money you've put aside for new furniture/appliances and re-decoration. :)


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    #6
    dearg lady
    Closed Accounts Posts: 2,091 ✭✭✭dearg lady


    Thanks CelticRambler, I have 2 accounts, and have done all this, I'm pretty far along in the saving. I just made a silly mistake this month, thinking I wouldn't need money which I now do!


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    #7
    CelticRambler
    Registered Users Posts: 6,831 ✭✭✭CelticRambler


    In that case, if it's a one-off, don't worry about it. When all is said and done, what the banks will be most interested in is the total amount of cash you have available for the deposit, not how you built it up (although saving a regular amount will show you can comfortably afford that much as a repayment).


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    #8
    Pac2015
    Closed Accounts Posts: 186 ✭✭Pac2015


    dearg lady wrote: »
    Slightly silly question, but perhaps someone might have experience.

    Let's say I save €1,000 every month into my deposit savings account. One month I put €1,500, thinking I won't need the €500. I realise I do need the €500,and withdraw it. When actually applying for a mortgage will the bank look poorly on my withdrawing from my savings, even though I still saved the usual €1,000 in the month.


    If its a once off then it wont be a problem but what I did was I set up a seperate account online with PTSB who I bank with called House Extras and this was for legal fees, stamp duty, surveyor etc and I still save between 1100-1400 in my actual house deposit account.
    Once occasion I had a unexpected vet bill I had to pay so I took it from the House extras account whilst not touching the savings account.


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