IT’S been over a year since the introduction of the Mortgage Market Review (MMR), and according to a report commissioned by Experian in April 2015 more than a quarter of us now feel less in control of securing a mortgage
IT’S been over a year since the introduction of the Mortgage Market Review (MMR), and according to a report commissioned by Experian in April 2015 more than a quarter of us now feel less in control of securing a mortgage. Not great news.
If you’re one of the many people looking to take out a mortgage, Standard Property would advise you to do your homework first, while Henley’s local estate agents advise seeking professional advice from mortgage advisers as early as possible.
Here are some pointers to get you started:
1. You need to ensure your finances are in order, ideally six months before you apply. This shows the lenders you are able to uphold a healthy bank account and maintain regular direct debits. Ensure you know how much you can borrow before you start the search for your new home.
2. Expect the application stage to take a while. This is due, at least in part, to the length of time it takes a lender to underwrite your application. By speaking to an adviser who can look at the whole of the mortgage market, you will avoid having to do this more than once.
3. The amount of money you could borrow, and the choice of mortgage products available to you, could be influenced by whether you speak to an adviser who has access to the whole of the mortgage market or directly to one lender.
4. As Standard Property has warned before, don’t get caught out by lenders “not applying the MMR rules correctly”. There have been multiple cases of people facing mortgage penalties and higher interest rates as banks use the MMR rules to “weed out” borrowers on cheap deals.