The Mortgage Market Review (MMR) is nearly upon us, with the new rules being introduced in a little over a fortnight. However, Anderson Harris has been preparing for these changes and our advisory process already fully complies with the new regulations.
The key difference under the new rules is that lenders will no longer be allowed to lend on a non-advised basis. So whether you go direct to a bank to get a mortgage or via an independent broker, they must adhere to the advisory process set out by the regulator. What hasn’t changed is that banks’ in-house advisers will still only be able to advise on their own limited range of products, so independent advice is vital.
One major concern is that it will take longer to get a mortgage as lenders pore over applications in much greater detail than in the past. The level of supporting documentation will be greater and banks will take a more holistic and rigorous look at affordability. Many banks are already up to speed with these changes and we have successfully guided many clients through the new process already. But if you are in a contract race and need your finance arranged quickly, you will need assistance from a broker to steer the application through in a timely fashion.
The good news is that lending criteria in general remain unchanged across the majority of the market. This means that good applicants have nothing to fear from MMR but getting advice is the most prudent and efficient way of securing the best outcome.
Please get in touch if you have any queries about the new rules or to discuss your mortgage requirements.