Proof of Ability to Save for Mortgage Application

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kellyr4

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Say a person plans to apply for a mortgage in 12 months time. During this 12 months they want to build up a good savings record with their bank (which is also the bank they intend to apply for the mortgage with)

Person has a small lump sum in a deposit account.

This is my question. Should the person:

Lodge a monthly amount say € 1800 into the deposit account and do this consistently for the 12 months.

or

Set up a regular savings account with a standing order from your current account and for the 12 months have € 1800 transfer automatically every month into the regular savings account.

Or is there no difference at all?

Or would the bank look more favourably on one of these saving methods in terms of approving a mortgage.
 
The priority is to demonstrate an ability to save the €1,800 per month for a period, which is what you're doing. It wouldn't be that important how you go about it. In fact, you should probably look at the Best Buys list here on Askaboutmoney to see what the best deals for regular savers are. It wouldn't be necessary to save with your chosen lender.
 
Thanks for the reply. I guess with 271 views and only 1 reply you must have thought it was a stupid question.

I just wanted to make sure that there was no difference in how the bank looked at a person's saving methods in terms of how much of a mortgage they would allow them to borrow.

I personally thought that the bank would prefer to see a regular saver account set up with a monthly standing order as it is more clearly set out rather than transfering an amount from current account to deposit account each month.
 
OP, I saved for a couple of years beforehand into a credit union account each month and my lender was happy enough with that. Hope that helps.
 
It won't make any difference as long as you can provide proof of savings ie in the form of a statement etc when the lender looks for same.
 
It isn't a dumb question OP and don't be too disheartened that it was 272 before a response. There's usually more people lurking and looking than answering anyway!
For what it is worth, I agree with the other posters, proof of saving is more important than where you put the money. Bank had one concern about a large standing order I had coming out of my account until I told them it was the deposit :) That was before the recent high interest savings accounts so it was just going into the CU, they thought I was paying back a loan.
 
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