It doesnt make sense to me????!?

Question

Myself and my partner have submitted an application for a mortgage a while back. We never mentioned at the time that I am currently pregnant..we thought it might hinder the amount of money banks were willing to lend us.

I have been told by word of mouth that if you have dependants / children, banks are actually more likely to give you a mortgage...how is this possible..can anyone explain it to me?

In my mind it seems if you have kids you have less available cash to repay a mortgage?

Answer 1

All Banks are crazy in setting their critaria.

Banks feel that if you are pregnant than you will not work hence you will loose income.

If you already have kids then you are more likey to look for and keeop the job as you have to feed and look after them so you will have an income.

Answer 2

Although the banks say that they treat each case individually, they do categorise people when considering applications for loans and mortgages.

A young married couple expecting children will have less available cash, but are also more likely to have a stable relationship and set a budget to suit their expenses.

So, the bank can be more confident of the payments being met and so are more willing to lend.

Answer 3

Don't you think it might have been a good idea to tell the truth?

Answer 4

To them it would appear as if you are more dependent on keeping a steady job, therefore keeping ontime payments and a stable bill for them. They will give you more money for a mortgage if you have kids.

Answer 5

If you have dependants/children, you need a home more. So you will try your best to make more money to maintain your family and repay your mortgage and not become homeless. The best reason to get a mortgage from a bank is to use it buy a home.

Answer 6

If you have kids then you are more likely to have a stable marriage and thus stable jobs and THUS repay your mortgage

Answer 7

but if you have children you are more likely to be stable, holding a job, paying bills responsibly.

Answer 8

Not true.

Word of mouth and rumour are never as accurate as the correct facts from the banks.