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Mortgage Deposit Query

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  • 22-07-2016 5:43pm
    #1
    Denzo
    Registered Users Posts: 19 ✭


    Hi

    just a query on a mortgage deposit, me and my fiance have seen a house we would love to buy, I have mortgage approval on my own since February however this wont cover this property price so re applying together,
    the deposit required is 14500e
    we have been saving for 16 months and had 7000 saved however i had to use some of this lately to purchase a car,
    We still have the 14500e however as my savings are currently 3000e and the rest of the deposit will be coming from my farm income 8000e and a gift from a parent of 5000e
    i was talking to my local bank and they say the withdraw for the car from my savings could come against me, and thatt they might not accept the money from my farm account, how can this be if i can just lodge the money i took from my savings back in from my farm account which i can whats the difference?
    we have also been paying 450e a month rent for 4 years,

    i cant see how anything could come against us when we have rent being paid for 4 years and savings for 16 months, both of which have never missed a payment, and am able to show we have the deposit regardless of withdrawing from the savings for the car?

    thanks


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    #2
    PedroDublin
    Registered Users Posts: 53 ✭✭PedroDublin


    Hi Denzo

    I have just go through the mortgage approval process, quite painful. From your post the problems I see are:
    It is not enough to have the money for the deposit, you also need to prove that the money is yours. If you have a gift from your parents you will need a statement from them saying that they don't expect to get the money back. Not sure what the farm income is but again you will need to prove ownership of the money
    Paying a rent of 450E may not be enough to show savings. Not sure about the rules but we had to shown regular savings on top of the monthly rent, enough to cover around 1.6 times the amount of the future mortgage repayments. Our mortgage will be 1200 a month and we had to shown proof of at least 800E savings on top of our 1100E monthly rent
    You will also need more that the deposit required. If deposit is 14500 I guess the house will be 145000. To your deposit you will need to add 1,450 for stamp duty, 2000 for legal fees, and a bit more for moving expenses. So the bank will probably be looking at a deposit of 20000 from you

    Hope it helps


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    #3
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    I'm afraid they can apply any policy they see fit as long as it (a) is not one of the protected grounds of discrimination (b) the review process don't find it overly onerous. That said I will add that it's fairly common knowledge that any withdrawal from savings during protracted period from application to completion is usually considered a no-no. Fair enough you weren't aware but for the benefit of others reading the thread.


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