From the end of April all borrowers will be have to pass a range of extra affordability checks and anyone who already has high childcare costs could see their applications refused or scaled back dramatically. Some mortgage insiders are beginning to predict a bit of a crisis where parents with young children could see the amount they can borrow reduced to almost half the amounts child-free applicants can borrow.
The Mortgage Market Review being brought in by regulator the Financial Conduct Authority is driving these changes. ‘This has been worked out with the best of intentions, but until it beds down it could bring a lot of unintended consequences,’ said one leading mortgage broker.
There is also some continuing confusion over how to treat maternity pay for mortgage or re-mortgage applicants which must be even more unsettling for new and prospective parents. And while the long-term intention of the changes is to ensure that everyone has a mortgage they can realistically afford, the best advice is to be ready for a difficult transition period this spring when every lender is expected to re-examine its application process before the new Financial Conduct Authority rules comes in. Enable is always keen to make sure any mortgage meets the needs of the householders especially if they have a family.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE
No comments:
Post a Comment