Preparing for Mortgage Application

Drebin911

Good Morning Moneysavers!

I'm currently saving for a deposit, I'm looking to potentially buy a property around April/May 2017.

I already have some savings stored in TSB 5% Current Accounts as well as in a few other "high interest" accounts.

My question is: I'm looking to apply Apr/May '17 for a mortgage, so I'm currently 'cleaning up' my current account, for when they look through my statements.

I've already cut out all the DD's I don't need etc. As this is my main account, I have a number of £1000+ transfers in and out, to fund my other accounts (halifax, TSB,Nationwide) etc .... Should I stop doing this to look better on the application?

Also, I currently have around £700-£800 which I have been saving each month, and sending to other accounts (leaving my main current account with a low average balance), will this look bad to the lenders?

Should I keep this extra 7/800 each month in my account to prove I'm not spending all my wages?

Any advise on the above would be much appreciated.

Thanks

Thrugelmir

Drebin911 wrote: »

Should I keep this extra 7/800 each month in my account to prove I'm not spending all my wages?[/B]

This doesn't prove anything. Other than you are not spending money at the current time.

Keep saving. As having a larger deposit is beneficial in many ways.

Have you opened a Help to Buy ISA?

ACG

Some lenders may want to see all of your bank statements. If they see you transferring money between them, they are more likely to know about them and ask for them.

Transferring money from your personal account to a savings account should not be an issue - although you would be surprised at how often I see people transferring money from a personal account to a savings account but going in to an overdraft and paying a higher rate of interest for the overdraft than they are getting on their savings.

GLM71093

Hi,
Me and my partner both transferred large amounts of our wages into savings and had a fairly low average bank balance. This didn't bother the bank at all and they never asked questions. I'm sure many people do the same thing.

Good luck!!

elverson

We had the same experience as GLM above. Lenders are concerned with general affordability not where every last penny goes.

TheShape

Will you be getting a mortgage with HSBC? They scrutinised bank statements when I applied for my mortgage. It was a somewhat drawn out process at the time when I had 2 accounts, wouldn't want to have to take them statements for the 13 current accounts I have now.

Perhaps simplify things for a few months prior to application to help smooth the process a little.

Check whether you have overdrafts on those current accounts and consider reducing or cancelling any you don't need so as to reduce your available credit.

Savings won't matter but I would have your savings details available so you can show that the money went into savings.