Eight questions your mortgage lender will ask – and why

• How much do you earn? Annual income is a crucial factor for all mortgage lenders as it gives them an estimate of what they can realistically lend.
• Do you have any debts?
• What do you spend your money on?
• Do you have children?
• Where is the property?

What decision do you have to make when taking out a mortgage?

When taking out a mortgage you’ll need to decide interest rates and the structure of the loan. These choices influence how long your mortgage will take to repay and how much you pay overall. For example if interest rates go down, switching to a different rate or term might mean paying break fees.

How long does a mortgage interview take?

Typically you will have your interview before submitting your mortgage application. Your interview might take place in one go, or over a few shorter sessions to collect all the necessary information. It can also be done face-to-face or over the phone and usually lasts between 1 and 3 hours.

What kind of questions do mortgage lenders ask?

Sharing the innermost details of your finances and future life plans with an almost perfect stranger isn’t anyone’s idea of fun, but there is good reason. We’ve listed the eight questions you’ll likely hear from lenders and, more importantly, why they need to know the answers. How much do you earn?

Is it bad to share your mortgage application with a stranger?

The mortgage application process can often feel a little invasive. Sharing the innermost details of your finances and future life plans with an almost perfect stranger isn’t anyone’s idea of fun, but there is good reason.

When does a credit card make a mortgage unaffordable?

The moment it becomes problematic is when borrowers hit a high % usage of available credit (i.e. maximum overdraft or credit card limit), or when the monthly payments are factored in with the potential payments on a new mortgage, the mortgage may be deemed unaffordable.

What should I tell my mortgage lender about my spending?

Historically you could simply tell lenders you spend £100 a month on groceries without having to prove it. More recently, however, lenders have started to check outgoings against bank statements to see for themselves if any significant expenses exist.