It’s one of the facts about applying for a mortgage: at some point, you will need to do a mortgage interview. These are done so lenders can determine whether or not you qualify for a loan and if you do, how much they are willing to lend to you.
This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice.
It’s a good opportunity for you to understand how much you can afford, but it’s really so you can prove that can afford what they’re going to lend to you even if your repayments increased down the line.
Typically, you will be subject to a stress test — so even if you’re taking out a fixed-rate loan at 2%, you will need to prove that you could meet the mortgage payments at a rate that is higher than your lender’s standard variable rate because once your initial term period ends, you will be switched over to an SVR.
It’s a mortgage provider’s responsibility to ensure you are not borrowing more than you can reasonably afford. Your mortgage interview is done before you submit your application so the lender can assess how much money you’ll have left after essential living expenses and debts and make a decision about how much you have available to spend on your mortgage each month.
What questions should you expect in your mortgage interview?
The objective of the interview is to assess how much mortgage you can afford, so expect questions about your income and expenses related to:
- Your annual salary
- What you typically spend your money on
- Your credit history
- Your existing debt
- Your history with payday loans
- Your family and plans for the future
- Your job and future career aspirations
- Expectations about your income in the future
- Non-essential spending habits
- Value of the property you want to buy
You will be also be asked about outstanding and ongoing payments, both essential and otherwise, so be prepared.
Home buying is an exciting process, but it can also be difficult and time-consuming.
As soon as you decide to purchase a home, we can help you get prepared for the mortgage application process.
At Dental & Medical Financial Services, we have experience helping first-time buyers get on the property ladder, so you’ll be in safe hands.