Payments to parents before mortgage application

Robbobss

Hello

how will monthly regular payments to parents for lodge be looked at by a mortgage company? 

I’m on the run up to getting a mortgage and want to make sure I won’t come into any problems with my bank statements.

I just have the usually card payments and direct debits and subscriptions affordability is not an issue with me as I will more than pass that with my salary. 

However I pay a monthly payment to my mother via bank transfer to her account to help her with the runnings of the house before I get a mortgage. 

It’s not a lot it’s just no more than £500 for lodge. The description says lodge.

how will this be viewed. 

1. Will they include this in the affordability even though when I move I won’t be paying this so it shouldn’t be in my affordability. If so is there a way of stopping them doing this before they check or is it all automatic. Can you get the chance to go through your statements with the lender to iron out and explain any transactions .

2. will this go down as suspicious to the mortgage lender and in anyway have a negative effect.

3. also what is the maximum amount of cash allowed from an atm each month before they see it as a bad thing.?


4. Would drawing cash out the atm and then paying it off straight away in full be recorded differently or will it just be reported as 0 on my credit card balance if I pay it off straight away. All lenders will see is the payment to my credit card and not an atm withdrawal? 

is it worth not drawing cash out at all. I do need cash for my work so looking at the best way to draw money without causing a bad effect on my application.  Or are you allowed up to a certain amount?

All the help welcome thanks 

CBN

You're overthinking it.  Lenders will treat it just like rent - an expense that will discontinue (unless you declare otherwise).  Don't start taking big lumps of cash out - that will generate attention!

macman

And most FTB's will be paying considerably more than £500 in rent, unless they're living at home like you. It's really not an issue, and it can be seen to be a regular payment. It's also below the £7.5k pa 'lodger limit' above which your mum would need to declare the income.