New Affordability Mortgage Rules Apr 14

DebtFree14_2

Hi Guys

I was wondering if any of you fine folk know the new rules that came into place recently with regards affordability for a mortgage. I take it they have become stricter?????

Contemptuous

Yes it's stricter.
You now have to document all your income, and all your expenditure will be taken into account for affordability purposes.

DebtFree14_2

Contemptuous wrote: »

Yes it's stricter.
You now have to document all your income, and all your expenditure will be taken into account for affordability purposes.

Excuse my ignorance but did you not have to do that before???

Contemptuous

No, you didn't..

MABLE

DebtFree14 wrote: »

Hi Guys

I was wondering if any of you fine folk know the new rules that came into place recently with regards affordability for a mortgage. I take it they have become stricter?????

According to an article I read in one of the quality papers yesterday it said they normally want to see bank statements covering a three month period. It also went on to say be careful what you buy as everything will be carefully scrutinised.

Thrugelmir

DebtFree14 wrote: »

Hi Guys

I was wondering if any of you fine folk know the new rules that came into place recently with regards affordability for a mortgage. I take it they have become stricter?????

Just back to how things used to be. In days gone by banks operated like this as a matter of course.

When banks treated loans like cans of baked beans. The writing was on the wall. Sensible lending policy is of benefit to everyone.

Hughesy84

Basically they will go through all your payments & purchases line by line to evaluate your spending, rather than just taking your word for it.

Typhoon2000

Maybe and idea to but your discretionary spend and non essential DDs ( Sky, magazine subscriptions etc) through another account for a few months.

lee111s

Typhoon2000 wrote: »

Maybe and idea to but your discretionary spend and non essential DDs ( Sky, magazine subscriptions etc) through another account for a few months.

You don't think they'll know that you have a seperate account? You'd have to move that money from where your wage is paid into anyway so they'd query where that money went...

DebtFree14_2

This is annoying because If I apply for a mortgage and have a SKY and BT DD that doesn't necessarily mean Im going to have it when I move. I only just made the affordability on the old system thanks to a large loan payment I make. This will probably tip me over the edge now

amnblog

If you want our pdf guide to changes for borrowers under MMR just PM me.