Posted on 24 April 2014
The recent headline in the Daily Mail won’t have people rushing to think about moving home, and ,worse, may even deter many of those would-be borrowers who have been encouraged by the extension of ‘Help To Buy’.
The new MMR (Mortgage Market Review) rules have received scant coverage outside of the trade press until now. However despite the Armageddon style predictions of the end of short term fixed rates, the introduction of ‘invasive’, ‘forensic’ questioning and massive delays in being able to see someone about a mortgage, let alone actually get one, it’s worth pointing out that there are ways that people can help themselves successfully secure a mortgage.
Rather than having to wait weeks to see a lender’s own mortgage adviser, and then having an alleged three hour interview with them, by going through an independent mortgage broker you can speed up the process hugely. An independent mortgage broker will be far quicker to access, and only needs to go through your information once. Thereafter they can then research all lenders who deal with intermediaries, to find you the most suitable solution to your needs.
Yes there are going to be more questions asked, and bank account conduct will looked at in far more detail than ever before, but an experienced independent broker will know the different criteria that each lender uses, and will have a better understanding of which one will offer the amount you need on the best terms for you.They can use their expertise and knowledge to to make sure that you get the mortgage you need, to get the home that you want.
Will the new rules lead to a slow down in property price growth? Well in the short term probably not, as supply is still hugely down on demand, and many lenders are looking to increase their lending on Buy To Let purchases, which all in all isn’t likely to have too negative an impact on price growth.
FCA chief exec Martin Wheatley has already admitted that: ‘In reality is it going to be perfect on day one? Probably not.’ He also believes that although the MMR will have some positives, there will be ‘some things that we are going to have to think again about’. Or to put it another way, if the impact of the MMR is too austere, then the regulator will move quickly to fix it.
So if you’ve been alarmed by the recent press coverage of the new regulations, try talking to a professional independent mortgage broker like John Charcol to help you understand the action you need to take to secure the right mortgage for you.
The blog postings on this site solely reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.