Mortgage - just a few questions....

Well, if what we hear is to be believed, getting a mortgage is going to depend on lifestyle as much as anything else.

There even seems to be an assumption after getting a mortgage your spending pattern would be the same as before it.

I completely agree that banks want to be sure that applicants could repay a mortgage, but in my (our) young days, it was simply 5% min deposit and 2 1/2 times main income + 1 times second income. No long questions, no 'do you have a dog / cat / horse etc?' That simple formula seemed to work OK, though I expect that the figures would have to be tweeked to allow for the current cost of housing.

Re: Mortgage - just a few questions....

Same for us when we bought our first house. The deposit, alone, would be difficult to raise nowadays for some, I think.
I feel sorry for the youngsters who are really trying to save for a house.

Re: Mortgage - just a few questions....

I'm a bit uneasy about this. Many people change their lifestyle in order to afford the house that they want, so asking about things like gym membership and holidays seems unnecessarily intrusive. Ok, if you have a pet or children obviously they involve ongoing expense, but gyms and holidays can be given up if financially necessary.
I have a sneaking suspicion that there is a marketing ploy going on here, trying to gather information on mortgagees for future use.

Re: Mortgage - just a few questions....

It's probably a good idea inasmuch it makes people consider their finances in greater detail and reinforces the idea that lifestyle will possibly have to change if a mortgage is granted. It certainly changed ours.....

Re: Mortgage - just a few questions....

Makes you wonder cos the other day I read in the paper there were record numbers of mortgages approved so, who knows?
Big brother, eh?

Re: Mortgage - just a few questions....

Way I see it it's just nonsense really as who can predict what they will be doing in 10 years or 25 years ? We have had highs and lows health problems completely unpredictable family situations and many other things happen on the way, including the banks miss selling us a mortgage that meant we were nearly 20 years into it before they told us the endowment wouldn't pay out enough so we had to remortgage and start all over again !

Re: Mortgage - just a few questions....

That's a fair point, Barry, and I don't actually know how much detail is being asked for. But I would have thought that anything other than essential expenses could be discussed less formally rather than be part of a detailed application form.

Re: Mortgage - just a few questions....

It is a fair point, people are excited about their first property and may not consider things well enough.
Watching the docus on house repos is upsetting so not a bad thing to be fully 'aware'.
Do feel for the youngsters today - its a hard slog getting there, for sure.

Re: Mortgage - just a few questions....

What if it goes the other way, your lifestyle changes because of the stress of paying the mortgage, and you take up drinking for example.

Re: Mortgage - just a few questions....

I think a few do !