Does investing affects mortgage application?

Koksmanareikals

Hi,

After 3 months I am planning to apply for mortgage so I would like to prepare little bit for it. 

Right now every week I am investing half of my pay to Stock and Shares ISA. I am wondering if investing could harm my mortgage application. 

I know you should keep expenses as low as possible before application but what about investing? Because bank will see those transactions on bank statements.

Please let me know your thoughts.

P.S. Employment - Self-Employed

TIA

Keep_pedalling

No, but if this is being put away for the house purchase, it should be being held in cash otherwise a fall in equities could leave you short as far as your deposit is concerned. 

Koksmanareikals

Keep_pedalling said:

No, but if this is being put away for the house purchase, it should be being held in cash otherwise a fall in equities could leave you short as far as your deposit is concerned. 

No, deposit I have already saved and it sits in easy access saving account (2.72% monthly interest).
Managed to save 25% deposit ( £100k ). 

Feeling like its better option to buy stocks now instead of keep piling money for deposit.

FarmGirl78

Depending on your age, have you looked at a Lifetime ISA (LISA)? You'd get a 25% top up on everything you save, up to £1000 on £4000 saving per financial year.

FarmGirl78

Ah, just to add, I've remembered that you need the LISA open for a year before you can use the bonus and the money. Might not be useful to you if you're planning on buying so soon.

Koksmanareikals

FarmGirl78 said:

Ah, just to add, I've remembered that you need the LISA open for a year before you can use the bonus and the money. Might not be useful to you if you're planning on buying so soon.

Thank you for advice. Because I plan to buy soon, there is no point opening it as you mentioned above.

So far only one person commented to topic. I'm still wondering if it's okay if lets say I get £1000 weekly and same day I transfer £500 to ISA.

TheJP

Its an outgoing so yes will affect affordability unless you use it towards the house.

Neilos9

no it wont.
Its a variable item you can amend, so will have absolutely no bearing on affordabilty, i would be explaining what it is though.

grumiofoundation

TheJP said:

Its an outgoing so yes will affect affordability unless you use it towards the house.

Not necessarily (if at all) ,as above can easily be stooped. A lot of lenders will ignore pension contributions for the same reason.

Koksmanareikals

In my understanding it shouldn't count as expenses. Because it isn't credit agreement. It's like spending your money wherever you want, like supermarket.  

TheJP

grumiofoundation said:

TheJP said:

Its an outgoing so yes will affect affordability unless you use it towards the house.

Not necessarily (if at all) ,as above can easily be stooped. A lot of lenders will ignore pension contributions for the same reason.

Lenders class pension contributions as an outgoing. Monthly investment is still an outgoing.