Think you can get a mortgage?

conran2Since the financial crisis mortgages have become a lot tougher to get through, but in the last six months they have become much easier to secure but on 26th April there is a big change as the mortgage market review (MMR for short) comes into effect.

MMR ultimately will make getting a mortgage more of a challenge as lenders bring in various “stress tests”. These stress tests take into consideration the applicants financial position in far greater detail. For example, does the applicant have kids and if so what is the cost of them, do they gamble, do they go on expensive holidays each year, what do they spend down the pub and much more. Obviously if one has a lavish lifestyle or spend fortunes on their kids then this will reduce one’s borrowing power in the future.

In the “old” days getting a mortgage was far easier for the consumer as some lenders offered four times income and some others went up to five times whereas others worked it out on a very basic affordability test. These traditional ways are firmly in David Jones’s locker and unlikely to be seen again!!
Another big change is that any lender offering mortgage products direct to the consumer must have professionally qualified staff from 26th April.

Historically lenders, large and small, employed staff who purely offer products from that lender. They were generally not qualified and as such not allowed to give advice. Therefore lenders have either had to train these staff at considerable cost to achieve professional qualifications (if they wanted to offer mortgages direct to the consumer that is) or make many redundancies and outsource their products through professionally qualified advisers.

My view is that the majority of lenders are going to have to only offer their products through advisers as it makes far greater commercial sense for them. As such the consumer could potentially pay a fee for this service especially if they wanted an Independent Adviser who offers the whole of market.

To end on I have some happy news. My company, Conran Financial, is an Independent Mortgage Adviser, we offer whole of market advice and anyone who wants to use our services will not pay an advice fee.  Just email us at by clicking here. or call on 0208 312 8317

conran financial is a trading style of Charles Conran Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England No: 03734618. Registered office: 221 Greenwich High Road, Greenwich, London SE10 8NB

About Simon Hughes

Originally a wealth manager by trade, when Simon was given the opportunity to take over an ailing Conran Estates he jumped at it and turned it into the thriving business it is today. Look out for his monthly blog in Greenwichmums where he talks about all things residential.

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