Mortgage Market Review (MMR) has finally arrived
MMR is now officially in place and this means a number of changes for Lenders. Stricter lending criteria will also mean that the process of obtaining a mortgage will prove to be more difficult for some borrowers.
The Mortgage Market Review (MMR) is a comprehensive review of the mortgage market, which started with a Discussion Paper in 2009 and culminated into a Policy Statement and final rules in October 2012. It is designed to ensure that the property and mortgage crisis of 2007 would not happen again.
The MMR package of reforms is aimed at ensuring the continued access to mortgages for the great majority of customers who can afford it, while preventing a return to the poor practices that we saw in the past.
With immediate effect, the majority of borrowers must receive advice from qualified mortgage advisers based on their affordability. This means that even when your existing mortgage deal comes to an end, if you want to borrow any more money, you will now need to obtain the appropriate mortgage advice (even if you decide to stay with your current lender).
We would therefore recommend that anyone whose mortgage deal is due to end within the next 2-3 months contact me now for a full review.