Preparation is key…
The mortgage market is changing – so how will it affect you?
The Financial Services Authority (which will be replaced by the Financial Conduct Authority in 2013) has been busy of late. Not only did they introduce new rules from 1st January 2013 for pensions and investments, but the mortgage sector will also see new regulations come into effect from April 2014.
This may seem like a long way off, but one initiative has already been introduced with regard to how lenders should treat fairly their “mortgage prisoner” borrowers, and other planned changes may well influence how lenders act leading up to April 2014.
So it’s well worth talking to us to obtain an understanding now of how it may affect you and your borrowing needs. Particularly as the regulator has put “advice” at the heart of its proposals and, of course, with advice comes a greater degree of protection for the consumer, which would be less evident if you opted for a non-advised execution only approach.
Some ways to borrow will disappear altogether such as self certification of income, and other types, like interest only, will be allowed, but with stricter affordability rules, where lenders will have to assess if a suitable repayment strategy is in place.
In addition to this, other elements will be introduced, such as no age restrictions for lending into retirement and less stringent affordability checks for high net worth clients.