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Mortgage Market Update

03.02.14

The first guides from lenders around potential changes due to the Mortgage Market Review, (MMR) are due this week which should be of interest to all of us.

Whilst lenders and brokers have been deep in discussion for a while now, it seems that education of the public has not been a priority, limited to a few stories in the press scaremongering about how tough it is all going to get again come the end of April when this comes into effect.

As ever, the reality should be somewhat different but there will be changes in the way that lenders calculate affordability and borrowers should be prepared to answer some more in depth questions around their monthly budget and what they spend their money on.

Those looking at property need to be sure all their documentation is in place sooner rather than later, (if in doubt, have a look at our handy guide on avoiding common mortgage pitfalls), but what is very important is that those with an Agreement in Principle before April 26th will find that it may no longer be acceptable after that date and a new agreement will be needed which could affect the borrowing.

As ever we will produce more information nearer the time and as it comes to us, but an awareness now of potential bottlenecks in the system at the end of April / early May as everyone gets used to the new regime will help to avoid issues.

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Andrew Montlake

Written by Andrew Montlake

Andrew Montlake, better known as Monty, began his journey with an Hons degree in Economics & Politics before starting in the mortgage industry in February 1994. As a main founder of Coreco in 2009, he successfully grew the brand, marketing, and communications, and was made MD in 2019 focussing on the overall vision, strategy, and culture of the company. As Coreco’s media spokesperson, Andrew can often be seen or heard on TV and radio as well as regularly commenting in the national, local, and trade press. He is the author of this acclaimed Mortgage Blog and is well-known for his social media, podcasts, and public speaking. Andrew is now proud to serve as Chairman of the Association of Mortgage Intermediaries, (AMI) as a cheerleader for the Mortgage Industry as a whole and continues to work at the coal face, writing mortgage business and advising clients.

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