If you are about to apply for a mortgage or remortgage, or are planning to in the next 6 months ****PLEASE READ AND TAKE NOTE**** New regulation (MMR - Mortgage Market Review) from the FCA (Financial Conduct Authority) sets out the case for reforming the mortgage market to ensure it is sustainable and works better for consumers. *** IMPORTANT - PLEASE READ**** Strict guidelines are now in place to ensure the Lenders are fully responsible for assessing whether the customer can afford the loan. Each Lender has a different way of assessing this but one thing is becoming clear - they will trawl through 3 months worth of bank statements in detail and enforce a rigorous interview process to ensure you can prove you can comfortably afford the mortgage - not only now but if and when income or expenditure may change. ie. - can you afford the mortgage when rates increase? - can you afford the mortgage when your tax credits or benefits cease in years to come? - do you live in your overdraft? (even if its approved and agreed) - are you self employed or a shareholder/director of a Ltd Company - if so do you have 2 years accounts and an SA302 from the Inland Revenue? The media have commented that if you approach a lender directly you should prepare for a 3 hour interview with everything in order to achieve a successful mortgage approval. I would be interested in any feedback, comments anyone may have had with lenders, baring in mind the regulations only came into effect this week. If you are considering a mortgage application I would strongly recommend you speak with a Whole of Market/Independent Mortgage Adviser who will (hopefully) guide you through the complicated and detailed process to ensure a successful and stress free mortgage approval with the most competitive and most suitable lender. For more information, help, guidance or advice feel free to comment here, PM via facebook or email me on [email protected] limefinancialservices.co.uk
Posted on: Wed, 30 Apr 2014 10:41:31 +0000
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