A good idea?? - Mortgage Exam

wymondham

http://news.bbc.co.uk/1/hi/business/10089550.stm

Probably a sensible idea for younger first time buyers. Many still go into this with a limited knowledge of the consequences small changes can make to them.... what does the panel think??

Thrugelmir

For FTB's some understanding of what they are entering into, would be useful.

dunstonh

I am going to be controversial but I would say that its not so much a knowledge exam that is required but a common sense or IQ test.

First time buyers dont need to know how it works. They need to know their responsibilities and what may happen when interest rates rise and that they need to budget for bad times and not just good.

We dont want FTB to end up like Daily Mail readers where a little bit of knowledge makes them think they are experts. We just need good old fashioned common sense and responsibility and understanding of the potential negatives.

dimbo61

You need to pass an exam to get a mortgage !!
how many hoops are FTB, s going to have to jump through to get on the housing ladder.
You need to pass an exam to keep your job today.
The MAN did say education, education,education !

Thrugelmir

dimbo61 wrote: »

You need to pass an exam to get a mortgage !!
how many hoops are FTB, s going to have to jump through to get on the housing ladder.
You need to pass an exam to keep your job today.
The MAN did say education, education,education !

Maybe it would help to reduce the number who fall off the ladder.

petebates26

I think it would be a good idea for anyone applying for a mortgage - whether it's a first time buyer or someone who's had a mortgage for 20 years!

Mortgages have always had terms and conditions, but the current financial climate has changed, meaning that more and more of these conditions (which were maybe once seen as 'small print' as they didn't affect the overwhelming majority of borrowers) have a very real effect on people's financial stability.

For example, my parents took out their mortgage, there were no major fluctuations in interest rates that they couldn't cope with - they just got on with it and paid it by the end of the term.

If someone who has had their mortgage for 25 years wants to remortgage for any reason, then I think they would benefit just as much from some education - if my parents were to remortgage now, they wouldn't get the same ride as they got with their original one, so don't think it would do them any harm to find out the same information as a First time buyer!

As has been mentioned so many times on various forums - financial services are offered based on a lender's idea of affordability - this is all based on a limited view of your income and outgoings - only you know the true picture to make sure you're borrowing responsibly, as opposed to blaming someone else further down the line for not lending responsibly!