Wanting to be a first-time family may mean you can’t be a first-time buyer

February 16, 2015 by Brendan O'Neill

Borrowers

Those hoping to buy their first home together are facing increasing rejection or missing out altogether on competitive mortgage deals, as they have a young family or want to start a family.

Following the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget review (MMR) that was carried out by the Financial Conduct Authority in the first half of 2014, lenders have tightened up their affordability criteria, introducing additional regulatory processes that saw more detailed questions asked as part of the interview.

The Bank of England retains the base rate at the record low rate of 0.5 per cent, meaning ultra-low fixed rates are available as lenders compete for mortgage business. Unfortunately, lenders pre-empt the fact that those with only one income, young families or those hoping to start a family (meaning an income may stop or reduce) may not be able to repay the mortgage. The concern means that lenders are refusing some borrowers the lowest rates they have available.

The enhanced regulation has led to more detailed and intrusive questions being asked, as borrowers’ circumstances and future plans are assessed.

As part of your role as a mortgage advisor, you will need to complete a full affordability with your customers, in line with your employer’s procedures. You will have completed your CeMAP training and had to have passed the end exam, in order to be competent and compliant in your working role.