Skip to content

Families 'penalised on mortgages'

Couples without children are being given bigger mortgages than those with a family as the lending criteria applied by banks and building societies is tightened.

More and more lenders are taking into account whether couples have children, factoring in money spent on childcare or school fees, when looking at a possible advance.

Evidence has shown that families can be advanced around 10 per cent less than a couple with no children, with the difference sometimes being as much as 20 per cent.

Sue Anderson, of the Council of Mortgage Lenders, said: "Different lenders have different affordability methods, but it would not be illogical for lenders to proxy the cost of children into their affordability assessment."

Critics have warned that the situation could lead to families being unable to progress up the property ladder, or even be penalised when they try to get a remortgage on their property.

Find Your Financial Consultant

Financial Consultant Form

More information about FCs

'WESLEYAN’ is a trading name of the Wesleyan Group of companies.

Wesleyan Assurance Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Advice about investments, insurance and mortgages is provided by Wesleyan Financial Services Ltd. which is authorised and regulated by the Financial Conduct Authority. Personal Loans and savings accounts are provided by Wesleyan Bank Ltd which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Wesleyan Bank Ltd subscribes to the Lending Code which is monitored and enforced by the Lending Standards Board. Wesleyan Unit Trust Managers Ltd. is authorised and regulated by the Financial Conduct Authority.

Click for more information about the Wesleyan group of companies.

© 2015 Wesleyan Assurance Society