Changes to Mortgage Lending

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Changes to Mortgage Lending

From April 26th 2014, changes will come into effect which may affect future property purchases made through the banks.

Back in 2005-2007, a large amount of mortgage lending was considered to be built on high risk and the borrowing of 100%+ mortgages and self-certification of income lead to concern for many when the global housing market crashed.

In a recent review of the regulatory framework, the Financial Conduct Authority (FCA) have decided to make a number of changes to ensure a more stable mortgage market and protect both the lenders and borrower in the future.

When these changes are implemented later in the year, it will ensure that the correct and most suitable advice is given to

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those seeking a mortgage. At the same time it will also ensure that prospective borrowers can demonstrate affordability, both now and in the future, taking into account changes in interest rates, future credit commitments as well as changes in their own personal circumstances.

If you’d like to discuss your mortgage requirements or simply find out more about mortgage lending don’t hesitate to get in touch.

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