Homebuyers failing to understand stricter mortgage regulations

August 26, 2014 by Brendan O'Neill

Property Market

According to recent research carried out by TSB, only around half of those currently preparing to buy a home in Britain know about the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review, or MMR – rules that were brought in by the Bank of England earlier this year.

Of those who know of the new regulations, it was discovered that many do not understand the impact they might have.

However, after the rules were explained to the respondents who did not understand them, only a minority – just three percent – said they could not predict the effect that the MMR rules would have on them. This is positive news according to TSB, because it shows that clear communication can help customers.

Once they comprehend the tighter mortgage lending regulations, more than half of the home buyers surveyed – around 53 percent – said they would boost their chances of securing a mortgage by saving up as big a deposit as possible. Further, 49 percent said they would check their credit reports before they applied for a loan, and 45 percent said they would carefully consider what they could afford. Additionally, 29 percent intended to get rid of their debts before applying.

TSB offers tips to home buyers that include checking how much people can afford to borrow before looking at houses. Further tips include saving for a big deposit, having a good credit rating, and being realistic about the affordability of mortgage repayments.

It also pays to get advice from a professional before applying for a mortgage, and it is best to approach qualified advisors who have completed CeMAP courses.