Mortgage lenders likely to get tougher on affordability
Banks and building societies are likely to increase the amount of questions they ask borrowers when they apply for a mortgage over the coming months.
The lenders are tightening up their affordability questions as part of the Financial Conduct Authority's Mortgage Market Review (MMR) which comes into force on the 26th April.
In order to qualify for a mortgage, lenders already assess how much you spend and also any credit cards or loans you have. However, as a result of the MMR, lenders may well ask even more questions.
Aaron Strutt, product manager at Trinity Financial, says: “One lender has just released the list of affordability questions they may request on application and it is extensive.
“It is possible they will want to know how much you spend on your car, parking and even its MOT. Household bills, pets and potentially the amount you pay for your dry cleaning may also be assessed.â€
January 31, 2014
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