Mortgage approval and transfers between current accounts

BaconandEggs

Hi,

We are waiting on a telephone interview for an agreement in principle for a new mortgage to move house.

Since our previous move, we have read that getting approved for a mortgage is much more difficult and we will be assessed on affordability based on income and outgoings (good thing). Some people have told us that their bank accounts are scrutinised closely. Others have said that regular payments to savings accounts are classed as spending and may reduce the amount that can be borrowed (not sure this makes sense, as the other account may just give a better rate of interest).

We have a number of current accounts that we shuffle money between each month to get rewards (H-fax) or higher interest rates (e.g. L1oyds). Will these funds going into/out of accounts affect our ability to borrow? Would it be better to cancel these standing orders to increase the chances of getting approved for a mortgage?

Many thanks,

amnblog

No, most of the above is rumour and incorrect.

It is not a complex as you suggest.

The Telephone Interview process however is horrendous, so good luck with that.

BaconandEggs

Thanks - heard the telephone interview can be very long. What sort of things do they want to know?

Do we need to start counting how many times we flush the toilet each day?