New Lending Guidelines Come into Play


We reported at the beginning of March that mortgages would likely become a lot harder to be granted because of new lending guidelines that are to crack down on irresponsible lending by banks and other lenders.
These measures are now coming into play, and people will now have to fill out a questionnaire about their lifestyle and how they spend their money. By analysing how much money potential homeowners spend and how much they have in lieu should help banks to make decisions on whom to lend to, and ensure they will only lend to people who are likely to be able to pay back.
These new guidelines could well make it harder for people to get the mortgages they want, and it could increase the deposits they will have to raise themselves. It could also stunt the re-growth of the housing market.
At the same time, Santander and NatWest have raised the rates on their Help to Buy mortgages slightly, which could pave the way for other lenders to start increasing their rates.
It seems that the housing market is becoming tighter, and more difficult for people to get onto the property ladder, especially as people will be less likely be able to move house as this will cause the market to stagnate somewhat.
However, the property crash from 2008 should be a good enough warning as to why these measures are necessary, and hopefully the market will survive in such a way that will prevent lenders making the same mistakes of the past.

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Finding the best mortgage advisers in your area is easy. Whether you're looking for buy to let, a residential mortgage, or a commercial loan, just enter your location into the form and answer a few questions. Then sit back and let the backend system do all the legwork to put you in touch with independent mortgage advisers near you!

Find the Best Rates from Local Mortgage Advisers!
Finding the best mortgage advisers in your area is easy. Whether you're looking for buy to let, a residential mortgage, or a commercial loan, just enter your location into the form and answer a few questions. Then sit back and let the backend system do all the legwork to put you in touch with independent mortgage advisers near you!

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