From May 2014 getting a mortgage will be a little bit harder.
The changes, brought in by the Financial Conduct Authority (FCA), mean lenders must ensure borrowers only get a mortgage they can afford.
The changes are:
- You will be asked to set out your financial commitments in more detail
- The application process will take up to 4 times longer (according to Money Saving Expert)
- New Borrowers will be stress tested for affordability
- Remortgages will become harder to obtain because of the stress tests
You can get further details from the FCA
Money Saving Expert have a useful Mortgage Calculator
Will this slow down the housing market?