New UK mortgage rules: Will I fall foul of the new mortgage rules if I have a lot of debts and outgoings? (Metro) The Mortgage Market Review means that borrowers will have to jump more hurdles to get a mortgage. One buyer is worried that the new mortgage rules might stop her from buying her dream home. Jane from Crouch End writes: ‘I live in a small rented flat and want to buy somewhere bigger where I can work from home. I’m worried about the new mortgage rules though as I’ve got quite a lot of credit card debts and my bank statements show a lot of outgoings. I’ve heard that even spending on clothes and hair will be taken into account and I may not get a mortgage. Is this true and what can I do?’ Matt Sanders, from Gocompare mortgages, says that the new rules are what responsible lenders have being doing for some time but there is one main change. ‘Lenders will now look at your bank statements to assess your earnings and outgoings rather than asking you to give an estimated figure.’ Sanders reminds Jane that the rules are there to protect rather than punish her for buying too many clothes. ‘Remember, lenders still want to lend, and rising mortgage approval rates are proof of this, but they need to ensure that the people that they lend to will be able to meet their repayments.’ Read more here: bit.ly/1wToRpA
Posted on: Thu, 05 Jun 2014 08:00:01 +0000
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