Spending existing savings while still saving for mortgage

howtolive

Hopefully a quick question!

We have a few different savings accounts earmarked for different things. At the moment our monthly savings are going into an account for a house deposit.

However, we will have expenses which will be taken from a chunk of cash already saved in another account.

Will the banks see this as a red flag, or will they understand that we have saved X amount in one account to be spent, and are still putting Y amount away specifically for a deposit?

E.g . If we save 1000 a month to account 1 for the deposit for 6 months but spend 4000 from account 2 will the bank see that we have saved up only 2000 in total over the 6 months or will it be understood that the 4000 spent was already accounted for?

Thanks!

Unless all the accounts are in the same bank and its also the bank you are intending to get a mortgage from I would only be giving details on your current account and any savings accounts you are using for the deposit and proof of ability to save. I wouldn't tell them about any other accounts, I have no intention of telling the bank about any accounts other than the ones that they need to hear about i.e. current account and saving account/accounts being used for deposit and savings proof.

Alkers

Once you don't touch the money in the house account, then they will use the amount you put into this account each month, plus any rent paid to estimate your repayment ability

howtolive

Thanks all! I do think you have to show details of all accounts held though.

howtolive

howtolive wrote: »

Thanks all! I do think you have to show details of all accounts held though.

What they want and what they will get are two different things.... They only know what you tell them unless the accounts are all with them.

athtrasna

There's also a banking forum if you want more specifics