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Saving for a mortgage as a couple - one or two savings accounts?

Last post Thu, Sep 27 2012, 8:12 PM by maxsteam. 1 replies.
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  •  Thu, Sep 27 2012, 8:12 PM

    Re: Saving for a mortgage as a couple - one or two savings accounts?

    phemark:

    Do banks care how you saved for a mortgage?

    No, not really. They will be more comfortable if you have cash savings rather than a share in some dodgy fine wine scheme (but you'll cash in any non-cash investments before buying anyway) and they will want to know that you've not borrowed to fund the deposit. Beyond this, I can't see it mattering much to the banks whether you save in one account or two. If one of you likes spending, it may be better for the other to organise the savings.

    Nationwide are one of the better lenders but you need to look at the whole scheme and it's best not to limit your options. If you like any particular lender's mortgage products, saving with them will help a little with the application but it wont be a major factor.

    Yes, the tax benefits of ISA usually make it worthwhile to use the full limit before saving elsewhere. Whether you go for both types of ISA will depend on your attitude to risk.

    • Post Points: 5
  •  Thu, Sep 27 2012, 10:51 AM

    Saving for a mortgage as a couple - one or two savings accounts?

    Hello,

    Me and my girlfriend will start saving for the deposit for a future mortgage. Our goal will be ~13k+ in two years~, so that with 95% loan we could get 260k worth new 1-bed apartment (this is not decided yet, so not asking anything about it, yet :) )

    I would like to ask all of you, what would be the best way to save, so that bank would be more likely to offer us a mortgage.
    i.e. Do banks care how you saved for a mortgage? Is saving in one account or two accounts better in the eyes of the bank?

    I know that credit rating, income etc. are the main factors in determining mortgage size and availability, but considering they are all ok, does the way of saving for a deposit affect this in any way?

    Thank you for all the answers!


    P.S. I was looking into Nationwide's Save-to-Buy scheme, which offers 95% loan if you saved with them for at least 6 months (if all other factors are good, of course)

    P.P.S. And am I right to think, that if we wont be hitting our cash ISA limit, it is best to save in ISA? (But thats not the main question, I can find that out later.)
    • Post Points: 20