Significant changes have come into effect as a result of the Mortgage Market Review (MMR). Tougher mortgage rules mean that lenders will have to carry out detailed checks on a borrower’s spending and stress-test ability to pay if interest rates go up.
The changes came into force from 26th April 2014 and for borrowers mean that they will have to account for all outgoings. They will face additional questions focused on imminent changes to their lives which will need to be backed up with evidence.
The regulator behind the new rules, the Financial Conduct Authority (FCA), said they would "hardwire common sense into the mortgage market", and prevent a return to irresponsible lending that took place in the run-up to the credit crisis.
APJ Accountancy comments:
“Some lenders adopted the rules earlier this month, but the changes will mean that anyone who applied for an agreement in principle on a loan several weeks ago, or who has applied for a mortgage and wants to make a material change - perhaps borrowing more – will have to start the application process from scratch.”
For further information, please contact us at 020 89310165
We are a team of Chartered Certified Accountant regulated and monitored by The Association of Chartered Certified Accountants (ACCA).
The changes came into force from 26th April 2014 and for borrowers mean that they will have to account for all outgoings. They will face additional questions focused on imminent changes to their lives which will need to be backed up with evidence.
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| FCA Mortgage Market Review 2014 |
APJ Accountancy comments:
“Some lenders adopted the rules earlier this month, but the changes will mean that anyone who applied for an agreement in principle on a loan several weeks ago, or who has applied for a mortgage and wants to make a material change - perhaps borrowing more – will have to start the application process from scratch.”
For further information, please contact us at 020 89310165
We are a team of Chartered Certified Accountant regulated and monitored by The Association of Chartered Certified Accountants (ACCA).
