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January 2014 Newsletter – Avoid the pain of MMR

January 10th, 2014 | No Comments | Posted in Monthly Newsletters

TMS

 

Avoid the Pain of MMR

 

While measles, mumps and rubella springs to mind and instantly fills you with blind panic; Mortgage Market Review really shouldn’t. We can help you to understand how the new regulations could affect you and your mortgage applications.
The Mortgage Market Review began in 2009, not long after the market crash of 2008. The Financial Conduct Authority (FCA) realised the UK mortgage market worked well for majority of consumers but for some, high-risk lending and misleading advice would be the cause of severe hardship. This prompted a comprehensive review and reform, setting the case for ‘Responsible Lending’. Ensuring the UK mortgage market remains sustainable and works better for consumers.

Under the new MMR regulations that come into effect 26thApril 2014, lenders will be responsible for assessing that a customer can afford a loan. Previous credit history and spending behaviour will all come under tough scrutiny, as well as the ability to manage the stresses and strains against the rising costs of living in the coming 5 year period. These new rules don’t just apply to new borrowers but could also affect customers with existing mortgages looking to re-mortgage.
While the high street lenders are preparing for a seamless launch. The introduction of new infrastructure, newly qualified advisers and operating under the new regulations could result in frustrating times for customers; lengthier and seemingly more invasive interview processes, as well as longer waiting times for approval of loans.
As a qualified broker we will use our expertise to help you look beyond the interest rates and compare the overall cost and features of the mortgage. We have access to a broad range of products and would only recommend a mortgage that is suitable for you, we know you can afford and we believe you can get.

These are just a few ways we can help speed up the application process and get the answer you want to hear.

  • The Mortgage Store (TMS Ltd.) is a firm of professional Advisers who specialize in all types of Mortgages and Related Insurance Services.


    For Free Advice on Mortgages and related Insurance Services or Use our CONTACT Page to send us a message


  • FEES:
    We are normally only paid by way of commission from the lender, Alternatively you can choose our Fee Only option where you pay us a fee instead and we rebate our lender commission to you. Depending on your circumstances there might be an additional fee charged for mortgage advice, and if so it will not exceed 1% of the mortgage amount.
    Your home may be repossessed if you do not keep up repayments on your mortgage.