Genuine Savings...time to save!
Genuine Savings: Genuine savings are a requirement where we are borrowing more than 90% of the value of the house and simply put it means savings that have been made and held (preferably in a separate account) for at least 3 months.
It shows a capacity to regularly save money and the potential to repay a homeloan as the amount you save and the rent you presently pay may come close to the regular repayment you will commit to. By any token it shows an abaility to manage money, which is what lenders want in all cases.
Any gifts or proceeds from the sale of personal items will not be allowed as genuine savings until they have been held in your account for at least 3 months, and where you have made other deposits to increase the balance.
Ideally genuine savings must be kept in a separate account with few - if any - withdrawals. Make regular deposits of smaller amounts rather than lump sums if at all possible, this means the lenders will ask fewer questions.
If you can try to look at the figure you need to save and the time frame in which to do so. Divide it up and work out how much you need to save each pay period. It is easier to forgo the movies or a night out if you know your goal and you know it’s for a short time only. Genuine savings can include shares and other assets which have been held for at least 6 months, the key is showing that you have an ability to manage and accumulate savings.