The City regulator Mortgage Market Review has resulted in proposals for new guidelines to come into play in April about who should be lent to.
Mortgage lenders will now be checking potential borrowers more personally, allegedly checking things such as the ownership of pets, gambling histories, and even how often the borrower dines out in restaurants.
The aim of this invasive review is to judge the borrower’s balance of income to outcome and ensure that they will be able to pay back the interest tabbed onto mortgages, and prevent them from falling into arrears with their payments.
This could apparently cut mortgages acceptances by up to a third.
This is bad news for would-be homeowners, first time buyers, and for the housing market in general which might suffer during its recovery from the lack of people moving into new homes.
It could also have the consequence of increasing initial deposits asked for by lenders.
However, it should also help people from getting into bad situations with money by taking on more than they can chew in terms of interest rates and repayments.
If you are a first time buyer and are worried about getting a mortgage, then contact your local HomeBuy Agent and see how they can help you out.