Savings question, related to mortgage application...

sooper

Hi all, newbie here and a little lost!

I will be applying for a mortgage within the year. I have 2 bank accounts. One main Barclays account and another Natwest basic account that I use for saving up for my hobbies etc.

When applying for the mortgage, do I need to declare the second bank account and its contents?

Would it affect me in any way?

libf

You may need to show proof of funds for the deposit.

sooper

Hi, thanks for the reply. I have a deposit sat in a savings account which is part of the main Barclays account.

The Natwest basic account is just a separate bank account for saving for hobbies/treats etc. I was just wondering if I would need to declare this account and its contents or not.

libf

What do you mean by 'declare'?

bobobalde

I think they mean when they apply for the mortgage and they have to fill in their bank account details, will they have to list every single bank account they have or just their main (barclays in this case) account.

I know where they are coming from, I have 3 accounts, one which my wages go into and pays my bills, a savings account which i pay into monthly, and an account which i put a fixed amount into each month incase i want to buy a game, or have a bet, or buy a mcdonalds breakfast etc etc

OP is probably like me, a bit worried that if they had to list that account on a mortgage application, that it would look bad if the bank wanted statements.

I dont know the exact answer, I would assume you list your main account, they would look at the statements and if they wanted to they could ask you for the other account statements as they would see you are paying into the other account each month?

Sure somebody will have a better answer though.

sooper

Declare as in, do I need to tell whomever I get a mortgage about the account or the funds that are in it?

Im still learning about the process of applying for a mortgage. I guess to simplify my question:

When I apply for a mortgage, will this account and the savings it hold, affect in any way my application? or, do I need to tell my mortgage provider about the account?

kingstreet

Probably not.

Probably not.

Lenders are interested in credit commitments and expenditure, not that you have another current account with savings in it.

csgohan4

kingstreet wrote: »

Probably not.

Probably not.

Lenders are interested in credit commitments and expenditure, not that you have another current account with savings in it.

I had 2 accounts, I had to give 3 months statements for both. Some do some don't. Don't take the risk, simply don't use it for high risk stuff like betting for 3 months prior.

sooper

Thanks for the replies. I dont gamble, never have to be honest. The account is simply used to save up for things like fishing equipment, AV and hifi, few games etc.

libf

sooper wrote: »

Thanks for the replies. I dont gamble, never have to be honest. The account is simply used to save up for things like fishing equipment, AV and hifi, few games etc.

Then why are you worried about having it looked at during a mortgage application?

ellie27

No, you do not have to 'declare' savings. Your lender will want to know what you earn and what you spend - they will want to see bank statements showing your wages going in and statements showing your expenses coming out.

You will have to provide proof of the savings you say you have for your deposit, that will come further down the line though.

We have savings in various accounts eg say £100k, but we were only going to use £70k for deposit, so only provided copies of statements for some accounts that total around £70k.