Will my lump sum have much bearing on mortgage approval?

Im 28 and want to spend 30k of inheritance on something private.

I was wondering when i go to buy a house in a year or two time will it be hugely detrimental to me that I will have spent this 30k

I have in total 150k at the moment

ie I will have 120k if I spend the 30k.

Can someone explain me the implications

Thanks guys

Re: Anyone good with mortgages ?

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It could have a bearing. Banks love customers who need loans of less than 50% of the value of a property. So (in a very specific case) if you were buying an apt for 300k and had 151k equity you would get a better interest rate than if you had less than 50% equity i.e. 120k.

In terms of actually getting approved for a mortgage they would also look at your earnings, your spare cash after you pay out for your bills, and your current loans.

Its hard to say without a more specific value for the property you are looking at and your current earnings and loans.

If you're asking will the banks mind you splashing out 30 grand on "something private" then the answer is no especially if you do it now and are not looking for a mortgage for a year or two.

It will not affect mortgage approval but as kmick said, it may affect the interest rate you must pay, the higher the loan to value, the higher the rate.

www.moneybackmortgages.ie