Mortgage interview questions

[Sidalee7]

Posting for traffic apologies for AIBU!
Has anyone recently had a mortgage interview with Santander?
I’ve had the agreement in principle, the credit checks and provided all evidence of earnings. This is the final piece and I’m keen to know if it’s a formality or are they going to dissect my supermarket budget?
It’s silly but I’m having massive anxiety over it and feel like I’m going to have a panic attack on the phone. The interview isn’t for another 2 weeks.

Steady on OP, it's most likely that they're going to go through what type of mortgage is best for you, and if you want advice on that or if you've already decided. So, fixed/tracker/variable rates and how much they cost per month, what term you're going to take the mortgage out over. Possibly also life/home insurances (but they'll have another investment specialist for you to speak to about these). It sounds like they've basically agreed that you're a good risk, and they're prepared to lend you what you need, just to finalise how your repayments will look over the next 15,20,25,30 years. Very standard, nothing to worry about.

I've had 5 mortgages in my lifetime and never had a mortgage interview.

I wouldn't be surprised if it was used as an opportunity to try and sell you other financial products.

Thanks both.
I know my anxiety is totally OTT but it just won’t go away!

It’s not something I’ve experienced but regarding your anxiety it may help you to take back an element of control and go in armed with a few questions of your own. Mortgages are a big step and the bank have a lot of power but don’t forget you are the customer here, they need to convince you as much as you need to convince them.

I've never had a mortgage interview. This is totally an upsell OP. I've had 9 mortgages over the years and not once have I had to do that.

If they try to sell you life insurance, just tell them you've already got it from DeadHappy for half the price (love that company)

I’ve never known an interview like this. Perhaps they’ve spotted an anomaly in your application? Or aren’t certain about lending? Very odd but what will be will be OP

I had a mortgage interview, they looked at affordability, so if the interest rates increased to x y and z levels could we afford it. They looked at major expenditure. So cars, school fees, commute, that kind of thing and level of disposable income. They don’t look at what you buy in the supermarket or anything like that. What they want to know is what are your committed outgoings and major expenditures v your disposable income, and then if rates went up to different levels could you still pay the mortgage.

It’s definitely part of the Santander process as it’s in all the steps, first agreement then credit check, then evidence/payslips checks then interview, then underwriters check, then official offer. It’s taking sooo long!!!!

I’d also say nthink it’s the norm now when moving to a new lender. We moved back from abroad so had one, it was with natwest. Our deposit was about two thirds of the property value and the mortgage less than two years earnings, it’s standard stuff.

Thanks@Bluntness100, can I ask if it was with Santander?

@Sidalee7

It’s definitely part of the Santander process as it’s in all the steps, first agreement then credit check, then evidence/payslips checks then interview, then underwriters check, then official offer. It’s taking sooo long!!!!

Yes, I think a lot of lenders do it now. I’m surprised if not all.

It is part of the affordability check they do for mortgages. Which, as said, is based on if the interest rates go up to certain levels could you still pay it, based on your other commitments. It’s like ten or eleven percent or something.

It’s not an up sell or anything like that.

No, natwest op.

Just seen NatWest!

I had this recently, they do not dissect your budget as I think they use average spending across demographics/population etc. The interview was fine just long. We got approved in spite of very odd circumstances. Good luck you'll be fine, they want to lend you money if they can, they just need to be confident they will get it back!

It’s to try to avoid what happened last time rates went through the roof. And all the repossessions. It’s really an affordability check.

Ours was over six years ago so struggling to remember the exact interest rate they check you can still afford it too. It is somewhere between 8 and eleven percent I think.

Ours was totally fine, she worked out what the mortgage would be at a certain level, and then worked out if we could afford it based on our disposable income and committed out goings, then as we could it was a yes.

Never heard of it. All the affordability checks were done with the mortgage application before we got the agreement in principle, as far as I remember (and yes, they were loooong phone calls).

So to give an example. Made up numbers.

Say your mortgage is 1000 a month.
And you earn 2500.

You’ve fifteen hundred disposable income right?

So if the rates go up and in two or five years your fixed rate deal comes to an end,,,and your mortgage becomes 1500 a month. That’s what it is everywhere,You can still afford it right? Pay your council tax and your utilities and eat? You can do it right? Because you’ve 1500 disposable income.

Well no, because then you tell them, I spend three hundred a month on my commute. And four hundred on wrap around and holiday child care. Or whatever. So then your disposable income is not 1500 a month. It’s eight hundred. And an increase of 500 on your mortgage means you’d be repossessed. Becayse you can’t pay all your bills and eat.

Then they say you can’t afford it. That’s what the interview is. Checking your major financial commitments, and what you can afford if the rates increase to a specific level.

Yeah it’s a stAndard process now - we have a santander mortgage. It’s to check affordability and mortgage options for outgoings like childcare / council tax. Our affordability level was really close the a max that they ought lend at but the interview was fine and the mortgage advisor wasn’t there to catch us out.

@SparklyLeprechaun

Never heard of it. All the affordability checks were done with the mortgage application before we got the agreement in principle, as far as I remember (and yes, they were loooong phone calls).

My mortgage in principle was given after a ten min phone call. It seems you still had it just yours was in advance and virtual.

The last person at Santander said I had a bit of wiggle room - (basically not borrowing the max amount I could ) but part of my income is based on bonus (proven) and child maintenance - not sure how much they pick that apart.

I've never heard of this. I'm sure it'll be fine.

Not with Santander but just had a mortgage interview and just went through the answers i gave on the application and made sure they were correct and gave advice on anything I wasnt sure about.

I had one last year with Santander. The child maintenance was taken into account, as was my enhanced shift allowance (I work permanent nights). It was going over the final details and working out exactly how much I could afford . It really wasn't too bad.

Thank you @KEA321 - did they ask about how you would repay once your child maintenance ended? It’s many years in the distance but before mortgage term ends...

Yes they did, as my daughter was 9 at that time. I said that in that time I would hopefully be working full time and I would not have to reply on child benefit payments. They accepted that.