Mortgage Market Update
03rd February 2014
The first guides from lenders around potential changes due to the Mortgage Market Review, (MMR) are due this week which should be of interest to all of us.
Whilst lenders and brokers have been deep in discussion for a while now, it seems that education of the public has not been a priority, limited to a few stories in the press scaremongering about how tough it is all going to get again come the end of April when this comes into effect.
As ever, the reality should be somewhat different but there will be changes in the way that lenders calculate affordability and borrowers should be prepared to answer some more in depth questions around their monthly budget and what they spend their money on.
Those looking at property need to be sure all their documentation is in place sooner rather than later, (if in doubt, have a look at our handy guide here), but what is very important is that those with an Agreement in Principle before April 26th will find that it may no longer be acceptable after that date and a new agreement will be needed which could affect the borrowing.
As ever we will produce more information nearer the time and as it comes to us, but an awareness now of potential bottlenecks in the system at the end of April / early May as everyone gets used to the new regime will help to avoid issues.
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Andrew Montlake, Director and Spokesperson for Coreco, gives his honest and forthright views on the mortgage market, economy and all things property related. Monty was voted "Mortgage Personality of the year 2008", "Best Press Spokesperson" in 2011 and is the current holder of the British Mortgage Awards “Best Marketeer” title. Expect expert analysis, delivered in a down to earth style with a side helping of exuberance.