If I was to set up a savings account and make substantial payments into it each month say 500e would this go against my mortgage aplication because it is reducing the amount of money I have for repayments.
In a word - no. If it was a loan or other commitment you were obliged to pay then yes, it would reduce your borrowing capacity. But it's something you can stop at any time and it will go in your favour both towards the deposit and your ability to save/budget.
I was just going to ring them this afternoon for some information on mortgage application in the very near future.
Am an accountant - what a stupid question to ask. It just popped into my head as soon as I posted the above thats its commented expenditure and savings that are taken into account.