Independent Financial Life Planners Bishop's Stortford: Mortgage regulation struggles

Wednesday, 14 May 2014

Mortgage regulation struggles

Enable's Independent Financial Advisors know that mortgage regulation is of course vital but sometimes it can feel like one step forward and two steps back. With the recent Mortgage Market Review (MMR) it seems to many that there is indeed added responsibility and it is being put back onto the lenders, leaving each lender to interpret the requirements and design its own systems and processes. In fear of getting it wrong the rules can become more and more difficult and the processes can develop an inflexibility that provides little room for sensible judgement.

Clearly it is important to establish that borrower can afford their loan but recently brokers have revealed some of the oddest questions they have come across when processing applications:

• How often do you have friends over for dinner? Do you have steak?
• What is your monthly expenditure on pet food?
• How much do you spend on alcohol per month? Does this increase in particular months?
• What is your average monthly expenditure on dry cleaning?
• On average, how much do you spend per month on nappies and other child-related perishables?
• When you move home, are you going to continue paying £21 per month for your milk delivery?
• Do you consider yourself to be a regular gambler? If so, how much would gamble on average per month?

Everyone in the mortgage business wants borrowers and clients to be protected but maybe things are going a bit too far at the moment. If you are looking to find a mortgage Enables IFA’s in Bishop’s Stortford will try and help you find the right provider and ask sensible questions to help you and the lender establish your ability to manage a home loan.

Your home could be at risk if you do not keep up your repayments.

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

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.