A colleague of mine tried to apply for a mortgage in the UK. He had good savings, enough to cover 20% deposit (the lenders officially accepted 10% deposits) and

A colleague of mine tried to apply for a mortgage in the UK. He had good savings, enough to cover 20% deposit (the lenders officially accepted 10% deposits) and there would be enough left to pay mortgage for a year. Good, steady income to allow him to comfortable pay the mortgage and put aside some money for savings/investments. One bank after another refused him a mortgage unless he'd agree to put all of his savings into the deposit, essentially forcing him into a precarious situation where any adverse event (loss of job, health problems, etc.) would jeopardise his ability to pay off his debt. Each bank he spoke to massively increased (doubled+) the interest rates way above what was advertised even if he'd put all of his savings into the deposit. He walked away and is still renting.