Withdrawing money from Mortgage Deposit savings

C

Chris2014

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Had a bit of a disaster with the car over the Christmas. Engine died and needs to be replaced costing 1k.

I'm saving for a deposit for a 65k mortgage. I have 6.5k in account so far and save 100 a week with no withdrawals since October. Was hoping to save till April with no withdrawals. Will be getting a bonus then which will bring the total to about 10k with 35k income.

How big a deal would it be to have to withdraw 1k? Still saving 100 a week.

Will I get a chance to explain that the car broke down? I don't want someone to think I wasted it over the Christmas or something. I've been extremely frugal for months and this is a bit of a disaster.
 
Could you pay with your credit card and then the mechanic's name would appear on statements? This bill could be then paid from your savings and explained as you provide whatever account records your bank asks for.
 
You have to do what you have to do. As goes repayment capacity they might take the view that you wouldn't be able to fix the car while making those savings so they may adjust accordingly.
 
Markel said:
You have to do what you have to do. As goes repayment capacity they might take the view that you wouldn't be able to fix the car while making those savings so they may adjust accordingly.
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Spot on.

Don't make the mistake some people make in running up interest on credit card bills or missing payments on credit cards because they want to "save" €100 a month.

Brendan
 
I had this issue when I was going for a mortgage, and as I remember it, the position is as follows:

- If over a six month period you save €1,000 a month and withdraw €1,000 to (say) fix your car, your savings are deemed to be €833 a month (i.e. €5,000/6).

- What I did (once) for cashflow reasons was withdraw some cash to cover an emergency, but then I replaced it. So in the above example, either take out €1,000 and either put €2,000 in the next month or feed an extra €200 a month over subsequent months.

Banks just look at the total period. In my view stuff like this is an advert for using a broker, and you can bounce queries off him/her.
 
My view on it. You need €1,000 now. You have the cash. Use it and make up the shortfall over the next year by saving a little bit extra into the account.

Borrowing/paying on a credit card makes no sense to me when you have the money available to you.
 
rob oyle said:
Could you pay with your credit card and then the mechanic's name would appear on statements? This bill could be then paid from your savings and explained as you provide whatever account records your bank asks for.
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Its in the credit union so no credit card.
Gordon Gekko said:
I had this issue when I was going for a mortgage, and as I remember it, the position is as follows:

- If over a six month period you save €1,000 a month and withdraw €1,000 to (say) fix your car, your savings are deemed to be €833 a month (i.e. €5,000/6).

- What I did (once) for cashflow reasons was withdraw some cash to cover an emergency, but then I replaced it. So in the above example, either take out €1,000 and either put €2,000 in the next month or feed an extra €200 a month over subsequent months.

Banks just look at the total period. In my view stuff like this is an advert for using a broker, and you can bounce queries off him/her.
Click to expand...

Thanks everyone.

Another question.

I already had 5k in the account that I saved a few years back and left in the CU. I then add 100 a week and a couple of lump 1ks until it hits about 10k which i will use for a deposit.

Technically my average will be lower than someone that saved the 10k in 6 months.

Anyone know what the difference would be?
 
There a few different issues there:

- Having the deposit in the first place. That's a binary point; you either have it or you don't.

- How the deposit was accumulated. For example, parents simply gifting the deposit is somewhat frowned upon. The individual generally has to demonstrate fiscal responsibility through saving.

- Savings as a component part of the affordability calculation. Your proposed monthly repayment is calculated and then stress-tested by circa 2%. Then you must demonstrate that you can and are covering an amount at least equal to the stress-tested amount. That can be done through rent, savings, or loan repayments which will drop off.
 
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