At the start of 2016, new rules for mortgages were introduced by the EU, making it much harder for some buyers to obtain a mortgage. If European mortgage regulations were scrapped, some believe it would become easier for buyers to secure a property.
The rules which were introduced earlier in the year affected many mortgage applications. For instance, some lenders refused to approve mortgages to people who were employed by large companies and were paid in foreign currency. Some lenders decided that it wasn’t cost effective to offer loans to these customers, as they would have to offer them an opportunity to convert the mortgage into another currency.
As Brexit comes into force, it will be possible to disregard some of the EU regulations which have made it harder for some UK borrowers to secure a mortgage. However, some of the stricter regulations are similar the ones which are already being enforced by the UK, introduced to stop risky lending practices.
The Treasury hasn’t decided whether it will disregard the EU rules regarding mortgages, especially as the stricter criteria was put in place by the Financial Conduct Authority rather than the EU. According to the chief executive of the Association of Mortgage Intermediaries, Robert Sinclair, nothing has changed following the Brexit result.
Mortgage advisers will still be required to undertake CeMAP training in Leeds and other cities throughout the UK, to ensure they are qualified to provide advice to borrowers looking for a suitable mortgage.