Hello, I'm seeking to move house and increase the value of my mortgage. I have spoken with a number of lenders and seem to fit the criteria fine - to a point. LVR is fine; Income multiplier ratio is fine; Credit Rating is fine; Affordability is fine, even when some short term debt is factored in. Where I fall down is on proof of savings to meet the stress test requirement. Currently, I pay €2k per/m. The new mortgage would be €2.5k. And if rates rose by 2%, it would be €3,200. So the bank wants evidence of six months savings, whereby I've lodged €1200 to an account. I don't have that evidence. Will the banks make any exceptions here? I can start now, but it's frustrating to defer move for six months.
Assuming the answer to the above is no, I am (now) in a position to allocate about €1250 per/m. Should I overpay my mortgage by €1250 per/m or pay down the short term debt? Obviously the short term debt carries more interest. On the other hand, if I pay down mortgage, looks good for mortgage lenders in terms of stress test, plus I'll have knocked €7,500 off the capital sum in six months so my mortgage will be less/ LVR better?
Really grateful for any advice or experience in terms of how banks treat this.
Thanks very much.
Assuming the answer to the above is no, I am (now) in a position to allocate about €1250 per/m. Should I overpay my mortgage by €1250 per/m or pay down the short term debt? Obviously the short term debt carries more interest. On the other hand, if I pay down mortgage, looks good for mortgage lenders in terms of stress test, plus I'll have knocked €7,500 off the capital sum in six months so my mortgage will be less/ LVR better?
Really grateful for any advice or experience in terms of how banks treat this.
Thanks very much.