Mortgage Market Review rules begin

Mortgage Market Review rules begin

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Video transcript

There are now more stringent rules in place if you want to get a mortgage, so using an advice providing broker like First Choice Finance could become a more popular way to navigate the mortgage lender maze.

The Mortgage Market Review (MMR) means lenders will probably dig deeper into the finances of would be borrowers so that all of their outgoings are considered, including childcare costs and even how much is spent on things like haircuts.

One of the ideas behind MMR seems to be to make sure that customers are only matched up with mortgages they can afford, which could help to avoid the kind of high income multiple lending which contributed to the financial crisis around 2008, that the economy is only just making a concerted recovery from.

Martin Wheatley, the chief executive of the Financial Conduct Authority, which is overseeing MMR implementation, explains that `we`ve come out of a period, particularly in 2008-09, when there was no attempt to verify people`s ability to pay, and we`ve ended up with….. lots of people in mortgages that are problematic for them`.

In an attempt to dispel fears about people with lower incomes or smaller deposits being frozen out of the market, the BSA`s Paul Broadhead indicates that `it is highly unlikely that a single purchase or category of expenditure will make the difference between yes or no decisions`.

Get help understanding MMR and its implications for what mortgage may be available for you by coming to an experienced mortgage intermediary like First Choice Finance, get in touch through firstchoicefinance.co.uk or call us to suit you on 0800 298 3000 or from your mobile dial 0333 003 1505

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Homeowner Secured Loans
9.8% APRC. Representative example: Borrow £50,000 over 180 months. 60 months at 8.1%, £497.83 pcm fixed at 60% LTV. Then 120 months at 10.1%, £539.89 pcm variable. Total payable £94,656.60. Total cost of credit £44,656.60 (including: £795 lender fee, £985 broker fee & £42,876.60 interest). First Choice are tied to certain loan providers.

Mortgages & Remortgages
8.4% APRC.
Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)


Unsecured Personal Loans
REPRESENTATIVE 49.9% APR (VARIABLE)
First Choice are tied to certain unsecured lenders.


THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Security is required on immovable property.



Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.

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