Prospective Mortgagees Beware
In the Matrimonial context it’s often very attractive to think that the answer, as it was for many years, is to go to the Bank and try to maximise your Mortgage Capacity. Of course the problem is that in these days of returning easy credit with banks loosening the purse strings again one might find oneself swimming too far out to sea financially.
We recently had a Bank offer a 77 year old person a 25 year mortgage! When challenged as to the appropriateness of the offer the High Street lending Bank claimed it couldn’t see any problems regarding affordability or otherwise.
Whilst that is an extreme example it is a sober tale to warn people against rushing into over confident mortgage capacities just at a time when it is likely that interest rates will rise from their historic lows sometime soon. District Judges will likewise not necessarily accept the wisdom of an over-optimistic Mortgage Capacity either