BEFORE YOU BORROW!
For many buyers obtaining a mortgage is an essential part of buying a property. Therefore before you embark on making an application there are a number of simple things you can do to make sure your application is not turned down, or the lender offers a reduced amount to the sum you originally applied for.
Several years ago the Financial Conduct Authority (FCA) following the financial collapse of 2008, introduced stricter lending criteria to encourage banks and building societies to lend more cautiously and avoid another potential financial crisis. For those intending to borrow to secure a property we offer some basic advice.
Today a number of Mortgage Market Review rules require lenders to “stress test” applicants with a view ensuring they would be financially able to survive should there be an increase in the mortgage rate which has for many years now been at a record low but will at some point in the future increase to higher levels than those currently charged.
With mortgages and their rates now featuring regularly in the Press, Bank of England and Government statistics mortgage applicants will be subjected to tougher rules regarding affordability and qualification checks. Therefore we strongly suggest the following advice – a relatively easy number of things you can do before applying for a mortgage.