How closely do banks look at your history for a mortgage?

Catmaspudding

Edit for clarity: The boiler broke in my current property which I am hoping to buy shortly. It is currently owned by a family member - but I pay maintenance costs as I live there.

I have been saving for a deposit for the last 8 months, and putting in a savings account enough money to cover the monthly mortgage cost. This was so it would be easier to 'prove' I can pay for it.

My boiler just broke (in the property I was hoping to buy) and I am looking to replace it with a much better one. It quote is around £2k-£2.5k and it would mean withdrawing from my savings.

Normally I would put it on interest free finance and pay over a year - I have enough income that I can pay the money into my savings and the boiler cost without too much issue. Unfortunately, I don't want to apply for finance this close to getting the mortgage. If I withdraw money from my savings then I am not proving I can afford the mortgage.

I could ask a family member if I can borrow the money and pay it back after I get the mortgage. I can even put the lump sum in a separate savings account ready to pay back.

Would it realistically make a difference though? I don't want to borrow money if it makes no difference to my application. How closely would a bank look at my recent spending?

Thanks!

muhandis

I might be missing something here, but surely you won't be replacing the boiler in the property you are hoping to buy before completion?

Once you complete, you can do as you wish - on finance, from your savings, etc

Nixia wrote: »

My boiler just broke (in the property I was hoping to buy) and I am looking to replace it with a much better one. It quote is around £2k-£2.5k and it would mean withdrawing from my savings.

Catmaspudding

Sorry, the issue is that the boiler is completely broken and it would be months before I can buy the property.

I can either put a cheap one in (which isn't cheap really) or put in a decent one.

The property is family owned so if I cant buy the price going up is a good thing, I know it could cause me issues if the valuation goes up when I am buying, but I dont want a cold shower for the next 6 months.

Also, if the property is sold to someone else the family member is paying me back for the boiler.

muhandis

Ah ok, you are talking about the boiler in your current home then?

I would not take out any new finance until completion. The lender will not mind if you dipped into your savings for one-off expenses like this, it's only new regular commitments that they would care about.

Nixia wrote: »

Sorry, the issue is that the boiler is completely broken and it would be months before I can buy the property.

Catmaspudding

Thanks

Yes, I was just worrying about spending savings just before - especially as I am making a point to put away £650/m knowing that my new mortgage would be £650/m. Might look like I cant save for emergencies like this in future.

gaz_moose

could you not ask your family member to sort the boiler and you will pay them back the money on completion.

just explain you don't want to be seen to be making large purchases.