Make a Move Now!

April saw a big change for anyone wanting to buy a property or remortgage their existing mortgage.

The Financial Conduct Authority (FCA) has made changes so that Lenders now have to follow rules which mean they must make sure that someone can afford the mortgage they want to take out.

These changes now mean that lenders won’t just be concentrating on what your salary is but also what outgoings you have and more scrutiny in relation to what you spend your money on.  Some lenders may even request copies of your bank statements so that can look out direct debit payments.  The additional scrutiny and questions asked may include the costs of travelling to work, childcare, other household bills including energy costs, and details of any loans and credit cards that will continue after the mortgage is taken out. The new rules may mean some borrowers find they can borrow less than they might have expected in the past.

The (FCA) says the changes have been made to prevent people from taking out mortgages when they can’t afford them and to prevent what happened in previous years when a large number of high-risk borrowers obtained interest-only mortgages in the run up to the financial crisis.

Brokers say the change will extend the process of taking out a mortgage and reduce the amount borrowers can raise.

But could this also bring good news for buyers?  If some people are finding it harder to obtain mortgages then this could mean less competition on the housing market and prevent the rapid rise in house prices.

Rates out there are still extremely low and there are still savings to be made and you can protect yourself against future rate rises too. So the advice out there is borrowers should act now to seal a low mortgage rate.  Everything points to making a move now!

If you require assistance with either buying or selling a property or any other kind of conveyancing matter then Contact Emery Johnson Astills today on 0116 255 4855 for fast, efficient, cost-effective conveyancing.