Trading up mortgage

H

house2018

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We're hoping to upgrade our home later this year and am starting to get mortgage ready. In order to get a mortgage we need to show savings of approx 800 in addition to our mortgage for 6 months which we can start doing from this month. I also have a loan of 2500euro which I want to clear. So I'm just wondering If I pay the 800 a month off the loan for 3 months and then start the saving, will this work as showing my ability to repay or will I need to show the 800pm after repaying the loan and therefore not be in the position to apply for 9 months?

Thanks
 
Yes, repayments to a discontinuing loan will count towards affordability, once the loan is fully repaid.
 
Ask them first. UB wouldnt accept this from us and I had deliberately paid down our loan of €4000. We went to a mortgage advisor and he said we would have been better off just paing the minimum amount off the loan each month (€250) and bank the extra to build up our savings. So in any case I had to start again for 6 months saving set amount each month. Also had to have €10000 in savings to show that we had funds to cover the costs of selling and buying again. So we saved for the 6 months until we had the €10,000 and proof of ability to repay etc
 
That's what I expected @Gordon Gekko
Actually, I think the previous poster was different reading it again in that they cleared the loan with a lump sum. Its banks being particular about seeing a regular monthly amount whatever way it's made up.
 
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