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25-07-2020, 20:04   #1
Shelga
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Question about saving after mortgage approval

Hi all- so I've received mortgage approval- I think it's the full thing? Ie I had to submit a swathe of documents, and it took a few weeks, so it's much more detailed than AIP. It's a letter from the bank saying they will lend me up to X amount, with a load of conditions attached, ie gift money I've said I'm good for has to be in my account before drawdown, etc etc.

My question is, is it ok to take a month off saving?? I have a large purchase I really want to make, and tbh I'm so sick of saving a minimum of €1500 every month for at least the last 14 months. From August payday onwards, I would go back to saving that amount, until I buy a place (hopefully before Christmas).

Would the bank rescind mortgage approval based on this? What if I drop to 'just' saving €5/600 this month, rather than nothing?

Thanks!

Last edited by Shelga; 25-07-2020 at 20:08.
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25-07-2020, 21:24   #2
Bigmac1euro
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Firstly are you paying rent?
If you are that will be taken into consideration for repayment capacity.

The bank wants to be able to see you are able to pay a mortgage (stress tested)

I basically saved and paid rent which was double what I needed to save. As the rent alone would have been enough.

Tbh my opinion is, you’d be mad at this stage to change anything about your savings considering your approval is based on this.
Leave the big purchase off if you can it’s not worth it. You’ve already made it this far.
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25-07-2020, 22:49   #3
guyfawkes5
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Quote:
Originally Posted by Shelga View Post
Hi all- so I've received mortgage approval- I think it's the full thing? Ie I had to submit a swathe of documents, and it took a few weeks, so it's much more detailed than AIP. It's a letter from the bank saying they will lend me up to X amount, with a load of conditions attached, ie gift money I've said I'm good for has to be in my account before drawdown, etc etc.

My question is, is it ok to take a month off saving?? I have a large purchase I really want to make, and tbh I'm so sick of saving a minimum of €1500 every month for at least the last 14 months. From August payday onwards, I would go back to saving that amount, until I buy a place (hopefully before Christmas).

Would the bank rescind mortgage approval based on this? What if I drop to 'just' saving €5/600 this month, rather than nothing?

Thanks!
Banks typically care far more about repayment capacity (i.e. take home versus permanent expenses) rather than saving history.

I would imagine so long as the purchase doesn't bring you below the minimum required deposit and expected sale expenses (usually expected solicitor fees and stamp duty), they wouldn't care.

If you're concerned, it's very straightforward to run by your broker or bank advisor. It's in their interest to keep things as straightforward as possible for you.
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26-07-2020, 10:19   #4
cython
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Quote:
Originally Posted by Shelga View Post
Hi all- so I've received mortgage approval- I think it's the full thing? Ie I had to submit a swathe of documents, and it took a few weeks, so it's much more detailed than AIP. It's a letter from the bank saying they will lend me up to X amount, with a load of conditions attached, ie gift money I've said I'm good for has to be in my account before drawdown, etc etc.

My question is, is it ok to take a month off saving?? I have a large purchase I really want to make, and tbh I'm so sick of saving a minimum of €1500 every month for at least the last 14 months. From August payday onwards, I would go back to saving that amount, until I buy a place (hopefully before Christmas).

Would the bank rescind mortgage approval based on this? What if I drop to 'just' saving €5/600 this month, rather than nothing?

Thanks!
Generally if your approval isn't against a specific property and you don't have a letter of offer, I think it's still just approval in principle. Just some banks criteria for extending that are more stringent than others, hence you may have felt you jumped through hoops.
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26-07-2020, 19:57   #5
true-or-false
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Why don't you just withdraw the money you need from your savings?

They want to see that you can save, but there's no reason why you can't withdraw from those savings - that's what they're for. That way you'll keep your track record for how much you save, and if they ask why the balance dropped (I doubt they will), you can just explain that you had an out-of-the-ordinary expense that month.
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27-07-2020, 13:51   #6
Shelga
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I've asked the mortgage broker for advice, so thanks for that suggestion! Should have a reply within 24 hours.
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