How does the Mortgage Market Review affect you?

May 23, 2016 by Brendan O'Neill

Borrowers

Current Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review regulations have been designed to ensure that borrowers would only be given a mortgage that they could comfortably afford to repay. Although it is primarily aimed at mortgage advisers who have studied for a CeMAP qualification and lenders, it may affect borrowers in terms of their mortgage application.

Lenders will need to see more evidence of income, as well as expenditure, so that they can calculate whether the mortgage will be affordable. As lenders will need to know about all outgoings, it is advisable to reduce all expenditure during the months prior to applying for a mortgage.

A mortgage application may take much longer than it did in previous years, due to the stringent checks that are now carried out. A lender may also have to consider various types of mortgage product, to decide which will be the most suitable for your circumstances. To try and minimise the time it takes for your application to be dealt with, consider speaking to a CeMAP qualified mortgage adviser who will have an understanding of various lenders and their products.

The introduction of the current regulations affects all borrowers, which includes first time buyers, anyone remortgaging a property or wanting to borrow for home improvements. Even transferring a mortgage to another property may mean that a borrower is reassessed.

Prior to applying for a mortgage, speak to a mortgage adviser who can help you to calculate the amount you can borrow and how to maximise the probability of being approved for a mortgage.