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More personal questions to be asked at mortgage application interviews

By The Citizen  |  Posted: April 26, 2014

Mortgage applicants will face a three hour lifestyle quiz to buy their next home

Comments (4)

Potential home buyers will face longer interviews with lenders and more personal questions when they apply for a mortgage, under new rules being implemented today.

The industry wide changes will see lenders taking a stronger inerest in applicants' personal lives and spending habits to assess their ability to meet repayments.

Applicants will sit through interviews up to three hours long where they may be asked about their plans for parenthood and how they will spend old age.

They will also be required to provide more paperwork under the new Mortgage Market Review rules introduced by the City regulator the Financial Conduct Authority (FCA).

The FCAs new rules aim to ensure borrowers are not offered loans they cannot afford.

Martin Wheatley, chief executive of the FCA, said: "Since the crisis, lenders have been taking a far more sensible approach to mortgage lending, and the MMR is designed to ensure that this common-sense approach continues. We do not want to see mortgage lending return to the practices of the past where people were taking out mortgages they simply couldn’t afford.

"While for some borrowers the questions being asked may seem more detailed, they should feel confident that practices which led to hardship and anxiety for consumers in the past will not be repeated."

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  • NibNobs  |  April 26 2014, 5:54PM

    honslknjklyt, you can tell the houses on short term lets, these are the ones where the tenants have no incentive to do their front gardens, ever sweep up rubbish outside their house or bother to hide ugly wheelie bins and food caddies.

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  • Justica  |  April 26 2014, 5:32PM

    This gives one deja vu. Just like the old days when they didn't just want to know how much you earned, but how you spent it. Just like flared trousers, it all comes round again.

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  • honslknjklyt  |  April 26 2014, 3:57PM

    The problem in this country with housing is investment buying. I know of housing developments where individuals and companies will buy several houses to rent out. Some of the tenancy agreements that are put on tenants are an absurdity, having to ask for written permission to put a picture up and state in advance where, must not use a washing machine before 8am and after 9pm, must not light a candle and so on. This is not a home, it is a place to live. A home is somewhere you build memories and can settle, there are not many tenants in private who can do this especially having as little as 1 months notice to leave. How can private tenants truly feel part of their community when they don't feel at home? If buy to let investors were forced to pay twice as much for a property and had rents fixed at a reasonable price, this would perhaps deter it and would free up more houses for people who want a HOME. Social housing has the best of both worlds, a home for life so long as they keep up their rent and the confidence to call their abodes home as well as repairs done and subsidised rent. These tenants wonder why there is such a desperation for people to buy their own homes. Well it is for security and home. A home being a right for some people yet a privilege for others. It should be simple, if someone like myself has managed to pay private rent and kept it up for many years, doesn't this show to some degree we can maintain it? The banks can't win though,so I don't blame the banks, the problem is investment buying rather than home buying.

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