Applying for mortgage - Savings ?

[wiggles1980]

How much savings is considered good these days?? We want to approach bank for mortgage but unsure how much we should have saved, or aim to save before approaching them. Married couple looking for 200k mortgage. Is there a percentage banks work off?

 

[elcato]

Please put a more meaningful title in future. I have edited it accordingly before other less patient mods decide to delete it.

 

[moneyhoney]

You'll need at least 8% of the purchase price saved as a deposit. But the more you have, the more choice you'll have re. lenders. AFAIK, only AIB will led 92% - the others will lend a max. of 90%. Your interest rate may also be higher for a higher LTV mortgage.

 

[wiggles1980]

Thanks money honey - its very hard to know whats acceptable nowadays, as banks have tightened up so much!

 

[ryaner]

While dealing with BOI recently, I needed to have the 10% deposit plus extra savings to cover legal fees, stamp duty etc and then still have some left over to cover expenses on moving into the house.