Recent changes to the mortgage process

New regulations are now in place for the approval and vetting of mortgages. But what does this mean for you?

Changes to mortgage applications were introduced from on 26th April, which will see tougher criteria checks and aim to reinforce consumer protection for all within the mortgage market. There will now be more stringent analysis of applicants’ income and outgoings.

writing mortgage

But what does this mean for you?

Firstly, most future sales will need to be conducted on an ‘advised’ basis. This means that staff will need to be fully trained and qualified to offer you advice on the best mortgage product for you, and not simply complete the mortgage application on your behalf.

The other main focus is on making sure that the mortgage and level of borrowing is suitable for the individual(s) considering their individual circumstances and needs. What this means in practise is that a more detailed assessment of your expenditure will be undertaken, taking in to account things such as credit card and loan repayments, child care costs and other regular expenses. There may also be the need to consider any potential future changes such as retirement.

These adjustments will apply both to new mortgages, but also to those looking to remortgage. If you haven’t remortgaged since the peak of the market in 2007, you may now notice considerable changes.

Relax in expert hands!

However, rest assured that ESPC Mortgages is fully prepared for these changes. In fact, affordability checks have always been at the heart of our mortgage advice. We believe in real stress testing of mortgage requirements to ensure that our recommendations are applicable both now and in the future.  And, of course, offering advice is something that we already do as standard.

Find out more

Pop in to the ESPC showroom for an informal chat, or give us a call on 0131 624 8680.

Find out more about ESPC Mortgages and other interesting mortgage news.

 

ESPC Mortgages

The initial consultation with an adviser is free and there is no obligation on your part. Thereafter, ESPC Mortgages charges for mortgage advice are usually £350 (£250 for first time buyers).

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured against it.

ESPC Mortgages is a trading style of ESPC [UK] Ltd which is an Appointed Representative of Accord Consultancy Ltd which is Authorised and Regulated by The Financial Conduct Authority.