Affects of Mortgage Market Review

LAE

Im just out of my fixed rate deal, my broker has spent the last two months sourcing a deal for me. Current situation is I have a current loan to value of 72% and I'm looking to re fix my existing mortgage for a further 5 years, the loan amount is 2x my annual salary, i have one HPI and no bad debt. I pass the affordability calculator but have had two declines from the lenders based on their view of affordability. My surplus income alone is 4x the monthly mortgage payment.

Im stunned by whats going on as I was starting to think about upgrading but it is looking like I wont be able to get a mortgage increase to do this. My broker said he has had a lot of issues since the MRR came in. Broker is now going back to my current lender to try and re fix but the deal in no where near as good.

Surely this is going to affect the housing market ?

Would welcome any advice or experiences.

dunstonh

The MMR is effectively a return to old fashioned lending criteria. If you could get a mortgage using "traditional" pre-credit boom criteria then you should be fine on that same basis. If you were pushing limits on affordability during the credit boom years then you are likely to struggle now if your affordability hasnt improved.

Surely this is going to affect the housing market ?

Some may say that it is a positive thing if it does cool it down a bit.

LAE

Hi thanks for the reply, Ive had my mortgage 10 years. Looking at it simplistically I thought that a 72% LTV and total borrowing of 2x annual salary would be considered a good risk along with a high surplus income each month.

That combined with a good credit record I presumed would make me a good risk.

Thrugelmir

Is your mortgage interest only currently?

LAE

No its a repayment mortgage, always has been