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Mortgage Offers
drjh
Posts: 1 Newbie
My two sisters and I are looking for a joint mortgage on a house.
Having gone through all the applications etc. we eventually got a mortgage in principal for £208k. When we had to up this by 6k, the mortgage company then turned round and said this wouldn't e possible- the main concern being that I hadn't been in my job long enough (3 months).
This would be a satifactory reason for not offering a mortgage. The lender then however, turned round and said that they could instead offered us a 5 year fixed rate (around 5.4%) mortgage at interest only.
Can you explain why we can't receive a mortgage for 2 years but we can for 5? The risk over 5 years is clearly greater than over 2, so I can only assume that this is an easier way for them to make money.
Having gone through all the applications etc. we eventually got a mortgage in principal for £208k. When we had to up this by 6k, the mortgage company then turned round and said this wouldn't e possible- the main concern being that I hadn't been in my job long enough (3 months).
This would be a satifactory reason for not offering a mortgage. The lender then however, turned round and said that they could instead offered us a 5 year fixed rate (around 5.4%) mortgage at interest only.
Can you explain why we can't receive a mortgage for 2 years but we can for 5? The risk over 5 years is clearly greater than over 2, so I can only assume that this is an easier way for them to make money.
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