There are now more stringent rules in place if you want to get a mortgage, so using an advice providing broker like First Choice Finance could become a more popular way to navigate the mortgage lender maze.
The Mortgage Market Review (MMR) means lenders will probably dig deeper into the finances of would be borrowers so that all of their outgoings are considered, including childcare costs and even how much is spent on things like haircuts.
One of the ideas behind MMR seems to be to make sure that customers are only matched up with mortgages they can afford, which could help to avoid the kind of high income multiple lending which contributed to the financial crisis around 2008, that the economy is only just making a concerted recovery from.
Martin Wheatley, the chief executive of the Financial Conduct Authority, which is overseeing MMR implementation, explains that `we`ve come out of a period, particularly in 2008-09, when there was no attempt to verify people`s ability to pay, and we`ve ended up with….. lots of people in mortgages that are problematic for them`.
In an attempt to dispel fears about people with lower incomes or smaller deposits being frozen out of the market, the BSA`s Paul Broadhead indicates that `it is highly unlikely that a single purchase or category of expenditure will make the difference between yes or no decisions`.
Get help understanding MMR and its implications for what mortgage may be available for you by coming to an experienced mortgage intermediary like First Choice Finance, get in touch through firstchoicefinance.co.uk or call us to suit you on 0800 298 3000 or from your mobile dial 0333 003 1505
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