A recent study revealed that around 70% of people had worries over the new stringent and more specific affordability checks undertaken by lenders following the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review (MMR).
Specifically, how the new rules would affect how much they would be able to borrow, and the length of time that the whole application process may take.
Equifax, a provider of credit information, found that just over 32% of people that were looking to place an application felt it would be challenging to gather the required documentary proof required at the time of applying.
The increased regulation also placed a greater responsibility onto lenders to ensure that they established the ability of the applicant to repay any monies borrowed. This means that a more detailed analysis of income and expenditure is now conducted, which is to check that borrowers can maintain the repayments, both in the present and the future.
Equifax Consumer Affair’s Laura Barrett said:
“We would recommend compiling any financial documents and expenditure information needed to support a mortgage application, as soon as the application process starts. Advance preparation will hopefully avoid any unnecessary delays.”
She suggested that applicants can also access and print a copy of their credit file, to check that everything is in order, before they place a mortgage application.
When you work as a mortgage professional, in order to comply with the new regulations you will have to undertake CeMAP training. This will allow you to comply with all regulatory points, whilst providing a transparent advice service.