Lifestyle quiz results in 20pc drop in mortgage approvals

By Michelle Rock

Mortgage approvals have dropped by 20 per cent since the new lifestyle quiz to test affordability was added to the mortgage application process, according to the Daily Mail.

The new checks have only been in place for 3 weeks but one of the biggest mortgage lenders is said to have revealed that there has already been a large drop in the number of approvals as a result. The lifestyle quiz lasts approximately 3 hours and was introduced to assess a mortgage applicant's ability to afford their loan payments, even if circumstances should change, including interest rate increases.

Reports are already emerging as to the nature of questions asked, with applicants saying they were asked about their plans for more children, and how often they ate steak at home. The new measures have been criticised for their intrusive nature, and the tick-box approach to assessment which some believe is preventing perfectly viable mortgage applicants from getting a loan. In particular there has been criticism that existing savings are being ignored, and that lenders are looking solely at income against expenses.

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