Most people think of childhood vaccinations when they hear the acronym MMR, but in this age of recycling the initials now have a new meaning. Since 26 April 2014, new mortgage lending rules have come into force under the Mortgage Market Review (MMR).

Julie Tomasik, Head of Conveyancing at Ansons Solicitors explains what this will mean for house buyers across Staffordshire.

The new rules for the mortgage market are intended to ensure people only take out a mortgage they can truly afford when they buy a new home. The Financial Conduct Authority aims to prevent a re-run of the irresponsible lending practices of the past.

Although the new rules are aimed at mortgage lenders and financial advisers they will have an impact on anyone making an application for a mortgage.

More detailed information

Lenders will want to know many more details about your income and expenditure, and you will be required to provide evidence. This is likely to include three or more monthly payslips, even up to three years of accounts if you are self-employed.

Lenders will also take a detailed look at your outgoings, particularly fixed expenses including council tax, childcare, insurance, credit cards etc.

Each mortgage interview is likely to take longer, so it will save time to prepare all your paperwork in advance.

Remortgages

Lenders will also scrutinise those looking to remortgage, get an extension on a mortgage for an improvement project, people moving to a new home and those transferring a loan to a new property may also be reassessed.

Julie Tomasik, head of the Ansons Solicitors conveyancing team reminds house-buyers that they are not obliged to use a solicitor recommended by their mortgage provider, and that as the Ansons online conveyancing quotations are calculated instantly, that is one part of the process where there will not be a delay!

Julie can be contacted on 01543 267 988 or email jtomasik@ansonsllp.com