Debt vs. Savings (mortgage application)

johnnyjb

Hi all, im just wondering would my debt in the credit union matter if i was applying for a mortgage, even if the savings could cancel it out.

Eu 3000 debt
Eu 3100 savings

Thanks in advance.

dan_d

Yes it will, they take all loans into account.

Without meaning to be rude, 3100 eur probably won't be considered as much of a deposit - obviously depending on what you're looking to buy.

However, at the end of the day, all you can do is ask. So in answer to your question - yes, they will take your loan into account, as it's money out of your account every week/month to pay it off, and therefore less money available towards a mortgage.

johnnyjb

dan_d wrote: »

Yes it will, they take all loans into account.

Without meaning to be rude, 3100 eur probably won't be considered as much of a deposit - obviously depending on what you're looking to buy.

However, at the end of the day, all you can do is ask. So in answer to your question - yes, they will take your loan into account, as it's money out of your account every week/month to pay it off, and therefore less money available towards a mortgage.

Thanks but i must of confused you, the 3100 is savings in the credit union but is not the deposit amount. I will have the required 10% or whatever the bank deems neccassary.

This question was intended to be seperate to a mortgage deposit. Thanks

Victor

As the savings cancel the loan, then it shouldn't be a problem. However, the bank will look more favourably at you having a good credit history, over someone who doesn't have a credit history.