MSE News: New mortgage rules: How do they affect you?

Potential home buyers who want a mortgage will have to have their finances scrutinised more closely from tomorrow
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New mortgage rules: How do they affect you?

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  • amnblog
    amnblog Posts: 12,437 Forumite
    First Anniversary Name Dropper Photogenic First Post
    They will affect everyone.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Pincher
    Pincher Posts: 6,552 Forumite
    Combo Breaker First Post
    They might as well demand that all brides should be virgins, and all cucumbers must be straight.

    While we are at it, why don't we get an attendance card for church/temple/synagogue/mosque? Your priest will do an EPC (Ethical Performance Certificate), renewable every ten years.
  • Leon_W
    Leon_W Posts: 1,813 Forumite
    First Post Combo Breaker First Anniversary
    The rules are absolutely fine. It's the lenders interpretation of them that's the problem. They have gone WAAAAAAY over the top.
  • Consumerist
    Consumerist Posts: 6,310 Forumite
    Name Dropper First Post First Anniversary
    Long overdue.

    It's a sad reflection on us Brits that we have to rely on lenders to make borrowers behave responsibly.

    Mortgage defaults cost us all so reducing them has be to everyone's advantage.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • katejo
    katejo Posts: 3,813 Forumite
    Name Dropper First Anniversary First Post
    Long overdue.

    It's a sad reflection on us Brits that we have to rely on lenders to make borrowers behave responsibly.

    Mortgage defaults cost us all so reducing them has be to everyone's advantage.

    Yes but the examples which I have heard so far seem over the top. As a first and 2nd time buyer, I was perfectly able to ensure that I didn't have outstanding other loans at the time of applying for a mortgage and to allow for an increase in interest rates. I have never had the slightest difficulty paying my mortgage.
  • Consumerist
    Consumerist Posts: 6,310 Forumite
    Name Dropper First Post First Anniversary
    katejo wrote: »
    Yes but the examples which I have heard so far seem over the top. As a first and 2nd time buyer, I was perfectly able to ensure that I didn't have outstanding other loans at the time of applying for a mortgage and to allow for an increase in interest rates. I have never had the slightest difficulty paying my mortgage.
    Yes, I have also heard of some questions being a bit OTT and the FCA seems to think likewise. But the general principle of borrowers being able to afford their debts seems to be sound.

    If every borrower had been as able as yourself to pay their mortgage then the financial crash would probably not have happened and none of this regulation would have been necessary. The crash was ultimately down to financial irresponsibility on the part of both lenders and borrowers.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • When anyone says 'i can afford the mortgage' I wanna put my foot thru the telly and send BBC the bill.

    However, those customers are assuming rates now not 2 5 10 years down the line.

    Long long overdue as the rules are imposed externally to lenders and they are applying by the looks if things cautious lending. Those that are close to the wire are those that will struggle when things go Peter Tong.
  • dunstonh
    dunstonh Posts: 116,341 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    The new rules look very similar to the considerations made pre-credit boom. Not at all silly and mostly common sense.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Does anyone know about current Nationwide applications? We have dip, paid and had an evaluation but our offer has been delayed for weeks now due to major mistakes and constant hassle from Nationwide. .. I don't think I could handle having to hand over more paperwork only for them to make a complete shambles and drag it out even longer...
  • brit1234
    brit1234 Posts: 5,385 Forumite
    I welcome the MMR, my only concern is the rapidly increasing mortgage terms from 25 - 35 years. The rising mortgage length could be the next scam to like the self cert/liar loans to keep this house bubble ponzi scheme going.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
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