Move home and save double the amount or stay renting and keep saving the same amount?

Bigmac1euro

Move home and save double the amount or stay renting and keep saving the same amount ?

Obviously moving home to save would give us a deposit quicker.
We would be basically saving our rent money on top of our Mortgage savings but would the bank look at this less favourably ? ( i really don't see why as we already have a good saving track record)

Saving since July last year and all is going well but wouldn't mind speeding things up because saving this amount while renting is painful and the thoughts of another 18 months is hard to swallow and if the prices go up so does the saving period.

pjdarcy

How do your parents feel about it? I assume that you moving back will mean that they will incur additional costs (heating/electricity/food etc). Do you plan on paying them rent?

Edit: sorry, I'm not saying that moving home is a bad idea. It's quite possible that your parents would be thrilled to have you back home. All I'm saying is that you should maybe consider things from their perspective as well as your own.

Cuddlesworth

That's a easy question to a difficult answer.

Plumbthedepths

Bigmac1euro wrote:

Obviously moving home to save would give us a deposit quicker. We would be basically saving our rent money on top of our Mortgage savings but would the bank look at this less favourably ? ( i really don't see why as we already have a good saving track record)

Do you not intend paying towards the cost of living in your parents house?

The_Honeybadger

Depends on where you are moving home to. We stayed with my in-laws for a while after we got married to save and it worked well. They are easy going and rarely home and we kept the house clean, paid for groceries and cooked, bought fuel etc in lieu of rent. Everyone was happy and I think they were actually sad to see us go in the end.

I couldn’t move home to my parents. They live on a very busy farm so there are all sorts of people in an out of the house all day and I would get dragged in to doing all sorts of jobs any time I’d be home, this still happens when I visit the odd time. My father is also a difficult man to live with for reasons I won’t get in to.

If it’s an arrangement that you can make work and your parents are open to it I don’t see any reason not to go for it. It’s amazing how much you can save when you take out rent etc. Make sure you have a rigid plan for saving the extra income as it would be easy to spend it foolishly.

NickNickleby

As a parent to adults, here's my side of it.

I'd encourage them to move home and save more quickly to get their own home. As far as expenses go, I'd expect a reasonable contribution towards running the home, but that (ie, what I'd ask for) would be nothing compared to paying out rent.

Taking a risk here, they already have rumbled my boards id.:eek:
:pac::pac::pac:

Bigmac1euro

pjdarcy wrote: »

How do your parents feel about it? I assume that you moving back will mean that they will incur additional costs (heating/electricity/food etc). Do you plan on paying them rent?

Edit: sorry, I'm not saying that moving home is a bad idea. It's quite possible that your parents would be thrilled to have you back home. All I'm saying is that you should maybe consider things from their perspective as well as your own.

Considering my father lives alone in a 3 bed house after my mother died with no mortgage he would be more than delighted to have me back. On top of this I would take over all bills.
He's actually hinted at it a number of times me coming back while saving. Now can anyone actually try and attempt an answer at the question above.

The_Honeybadger

Bigmac1euro wrote: »

Considering my father lives alone in a 3 bed house after my mother died with no mortgage he would be more than delighted to have me back. On top of this I would take over all bills.
He's actually hinted at it a number of times me coming back while saving. Now can anyone actually try and attempt an answer at the question above.

No brainer OP. Like I said though you will need to be disciplined and not let the extra money burn a hole in you pocket.

Bigmac1euro

Cuddlesworth wrote: »

That's a easy question to a difficult answer.

What does that even mean ?

NickNickleby

Sorry, my previous post fails to address your main question.

I know someone who did it, and they were definitely welcomed with open arms to the bank, when they did what you propose.

goat2

I had my children stay with me with their partners until they moved into the homes they built, it meant they could come out mortgage free, worked hard, , the youngest is now 33 and going great in her new home, anyway we would have heating on for ourselves, , did not ask for anything towards household, but if I saw them being stupid with money, they would be reminded why we all decided to live together, I am glad I put up with it all, and all is well in the end, and anyway with everyone working, we were not in one anothers space all of the time, they were busy building any time the had to spare, and best of all, we are all still great friends, no problems

Bigmac1euro

The_Honeybadger wrote: »

I couldn’t move home to my parents. They live on a very busy farm so there are all sorts of people in an out of the house all day and I would get dragged in to doing all sorts of jobs any time I’d be home, this still happens when I visit the odd time. My father is also a difficult man to live with for reasons I won’t get in to.

.

The bold part is also what puts me off. But yeah he really does want me to move home while saving but I have a better relationship not living at home.

Bigmac1euro

We would be basically saving our rent money on top of our Mortgage savings but would the bank look at this less favourably ? ( i really don't see why as we already have a good saving track record)

bucketybuck

Bigmac1euro wrote: »

Now can anyone actually try and attempt an answer at the question above.

Just what do you think anybody is going to be able to tell you?

Based on the little detail you have given it seems you could move back to a house where you would be welcome and in doing so drastically cut your costs. Sounds like a simple choice.

Reasons not to would include location, commute, relationships, work etc etc, all things that nobody here has been told a single thing about.

NickNickleby

Bigmac1euro wrote: »

We would be basically saving our rent money on top of our Mortgage savings but would the bank look at this less favourably ? ( i really don't see why as we already have a good saving track record)

NickNickleby wrote: »

Sorry, my previous post fails to address your main question.

I know someone who did it, and they were definitely welcomed with open arms to the bank, when they did what you propose.

To reiterate, this person was definitely NOT looked upon less favourably for moving home and substantially increasing the savings. They showed rent details for the prior period, then bank statements to show their increased savings after moving home. It worked out very well.

Bigmac1euro

NickNickleby wrote: »

Sorry, my previous post fails to address your main question.

I know someone who did it, and they were definitely welcomed with open arms to the bank, when they did what you propose.

That's good news!
Appreciate it. Might have a word with a mortgage adviser anyway. No harm I suppose.

hardCopy

Bigmac1euro wrote: »

We would be basically saving our rent money on top of our Mortgage savings but would the bank look at this less favourably ? ( i really don't see why as we already have a good saving track record)

The bank count savings + rent as one figure when assessing ability to repay, they don't care whether the split is 10:90 or 99:1.

Bigmac1euro

bucketybuck wrote: »

Just what do you think anybody is going to be able to tell you?

Based on the little detail you have given it seems you could move back to a house where you would be welcome and in doing so drastically cut your costs. Sounds like a simple choice.

Reasons not to would include location, commute, relationships, work etc etc, all things that nobody here has been told a single thing about.

Read the post again.
Nickle seems to be on the ball here.

Bigmac1euro

NickNickleby wrote: »

To reiterate, this person was definitely NOT looked upon less favourably for moving home and substantially increasing the savings. They showed rent details for the prior period, then bank statements to show their increased savings after moving home. It worked out very well.

This is what I was hoping for.
No brainer it is!

is_that_so

Bigmac1euro wrote: »

Considering my father lives alone in a 3 bed house after my mother died with no mortgage he would be more than delighted to have me back. On top of this I would take over all bills.
He's actually hinted at it a number of times me coming back while saving. Now can anyone actually try and attempt an answer at the question above.

You seem to have answered it yourself. He'd like it and you'd like it.

NickNickleby

Bigmac1euro wrote: »

That's good news!
Appreciate it. Might have a word with a mortgage adviser anyway. No harm I suppose.

Well, good luck with it. My understanding is that they want you to demonstrate an ability to pay a set amount every month (presumably as much as they might have to pay for the mortgage).

Before submitting bank statements, make sure there are no regular transfers to online gambling of any sort - I've heard modern myths about this.

The person I refer to, actually used cash most of the time, taking out sufficient amounts for day-to-day spending. It meant that , what might be considered as frivolous spending wasn't recorded - eg daily facials or whatever.

Bigmac1euro

People seem to be confused about the question.
What I meant was, will the banks look less favourbaly living at home saving double. Seem to have my answer i think.

Bigmac1euro

NickNickleby wrote: »

Well, good luck with it. My understanding is that they want you to demonstrate an ability to pay a set amount every month (presumably as much as they might have to pay for the mortgage).

Before submitting bank statements, make sure there are no regular transfers to online gambling of any sort - I've heard modern myths about this.

The person I refer to, actually used cash most of the time, taking out sufficient amounts for day-to-day spending. It meant that , what might be considered as frivolous spending wasn't recorded - eg daily facials or whatever.

I'm trying my best with just taking out cash. In todays world some saving while being extra careful of what I'm spending on its so difficult. Everything is tracked.
No gambling on account since last year and this was only 1 bet. Nothing for a year before that.

Plumbthedepths

Bigmac1euro wrote:

Considering my father lives alone in a 3 bed house after my mother died with no mortgage he would be more than delighted to have me back. On top of this I would take over all bills. He's actually hinted at it a number of times me coming back while saving. Now can anyone actually try and attempt an answer at the question above.

Your problem is then how will the bank react to not being in a position to show you were paying rent for whatever period you intend living with your parent.

bumders

Bigmac1euro wrote: »

I'm trying my best with just taking out cash. In todays world some saving while being extra careful of what I'm spending on its so difficult. Everything is tracked.
No gambling on account since last year and this was only 1 bet. Nothing for a year before that.

Speak with a broker I would say, You have come to a high horse forum where people think they know what they are talking about and asking about dealings with your own family which is none of their business.

NickNickleby

going to unfollow now, as I don't think I can add anything more to it.

Good Luck bigmac1euro.

Bigmac1euro

Plumbthedepths wrote: »

Your problem is then how will the bank react to not being in a position to show you were paying rent for whatever period you intend living with your parent.

I don't think I understand your question fully.

At the moment my rent is
1200 per month
i save 1200 per month.
Have rented for 3 years.
Started saving 1200 per month last July.

If I move home I would not be paying any rent.

I would just be saving 2400 per month.

Bigmac1euro

NickNickleby wrote: »

going to unfollow now, as I don't think I can add anything more to it.

Good Luck bigmac1euro.

Nick hopefully someday I can afford a bigmac for 1 euro and ill buy you one too.

Dolbhad

Bigmac1euro wrote: »

Move home and save double the amount or stay renting and keep saving the same amount ?

Obviously moving home to save would give us a deposit quicker.
We would be basically saving our rent money on top of our Mortgage savings but would the bank look at this less favourably ? ( i really don't see why as we already have a good saving track record)

Saving since July last year and all is going well but wouldn't mind speeding things up because saving this amount while renting is painful and the thoughts of another 18 months is hard to swallow and if the prices go up so does the saving period.

I moved back to parents house. Was the only way to save the deposit. Bank had no issue with it. With the stress test we had to have a certain amount to meet each month through rent and savings but they didn’t care if it was all savings. I did pay my way with my parents towards bills and food. However our bank would not include that as part of savings or bills.

Bigmac1euro

bumders wrote: »

Speak with a broker I would say, You have come to a high horse forum where people think they know what they are talking about and asking about dealings with your own family which is none of their business.

I think Ill be having words with a broker alright. I think some people here might of misinterpreted the question but that's cool! Some helpful info as well.

If someone posted who has done this before that would be helpful too but sure we'll see how it goes.

Ill probably wake up tomorrow with people asking me what age is my brother and does he have kids.

Bigmac1euro

Dolbhad wrote: »

I moved back to parents house. Was the only way to save the deposit. Bank had no issue with it. With the stress test we had to have a certain amount to meet each month through rent and savings but they didn’t care if it was all savings. I did pay my way with my parents towards bills and food. However our bank would not include that as part of savings or bills.

Thanks for the reply. Might have to move home then at least for the last couple of months to get the money up fast. Because this saving business is tough going but not impossible either as some people would say.

Ursus Horribilis

I don't believe it matters whether you're paying rent or living with your father. If they can see that you're putting away X amount of money every month and not dipping into it, it's a good sign.

bucketybuck

Bigmac1euro wrote: »

Ill probably wake up tomorrow with people asking me what age is my brother and does he have kids.

You can be as passive agressive as you want, but this is both the thread title and the first two lines of the opening post:

Bigmac1euro wrote: »

Move home and save double the amount or stay renting and keep saving the same amount ?

A pretty straightforward question there, with the query about banks only a throwaway comment further down the page.

Good luck getting the answer you want.

Plumbthedepths

Bigmac1euro wrote:

I don't think I understand your question fully.

It wasn't a question, some banks want to see an ability to pay a substantial bill each month as evidence of affordability. As advised check with a broker.

JeffKenna

Bigmac1euro wrote: »

Considering my father lives alone in a 3 bed house after my mother died with no mortgage he would be more than delighted to have me back. On top of this I would take over all bills.
He's actually hinted at it a number of times me coming back while saving. Now can anyone actually try and attempt an answer at the question above.

Your poor dad will be very lonely when you move back out again.

The_Honeybadger

Bigmac1euro wrote: »

I don't think I understand your question fully.

At the moment my rent is
1200 per month
i save 1200 per month.
Have rented for 3 years.
Started saving 1200 per month last July.

If I move home I would not be paying any rent.

I would just be saving 2400 per month.

Banks use a formula where they take your net Salary and then deduct an amount for cost of living (€ 2000 approx for a couple), any loans you have, childcare, and a set amount per child (€250 each).

Whatever is left over is supposedly what you can afford as a mortgage payment and the mortgage they offer will be based on this. It won’t matter where you are living when you apply as long as you can explain your circumstances.

jlm29

Bigmac1euro wrote: »

If someone posted who has done this before that would be helpful too but sure we'll see how it goes.

.

I have several friends who moved home to save, and had no issues getting a mortgage.
I have another friend who went and enquired recently about getting a mortgage, and the person they spoke to in the back actually suggested that they should move home to get a deposit together a bit faster.

Teacher23

Hi there,

I was in your position and my partner and I moved in with my family. It's worked out very well and we are currently applying for mortgages. They had no issue with the moving home part, what they really wanted to know was the amount we could put aside each month for savings; that's what was used to gauge our ability to afford repayments. If you continued to rent, both rent and savings would go towards it. Of course, as you said in your post, moving home would mean your savings would build up much faster. I suppose your main question you had was related to the view the bank would have - it wouldnt cause you any problems in my experience. Best of luck with your saving and your decision �� for me personally it would have taken so so much longer had I not moved home and I wish I had done it sooner.

bluepants

Hey,
Wasn't there an add released by one of the banks maybe a year ago, that portrayed a couple moving home to save for a mortgage (think they got a bit of stick for this at the time). Anyway, I think they half expect it these days, as rent, cost of living etc is so crazy.
Your savings will likely double, they will see this, plus you'll get to your deposit quicker, best of luck with it

Jurgen The German

There is no issue with it, I know many people that did it incl my sister. It's easily explained and readily accepted by the banks so it's a no brainer.