In the wake of the new mortgage rules that came into force on 26 April, after the Mortgage Market Review, the HomeOwners Alliance has seen increased interest from visitors to their site regarding the new rules.
Based on the levels of interest, the Alliance has produced a short consumer guide and spokeswoman Paula Higgins said: "While these new rules are welcome in the long term, many aspiring and existing homeowners will find they are not able to borrow what they could have borrowed this time last year.
On a practical level we can see this is having an impact on everyone – from people wanting to get a stake in their first property to those remortgaging for a bigger place or to pay for a home improvement project.”
"We provide free impartial advice on our website – www.hoa.org.uk – to help people understand the new rules, the range of mortgage options out there, tips on getting your credit rating in shape and how to get the best out of a broker."
On the increased affordability checks being made by lenders, Paula added: “We support efforts to encourage homeowners to carefully budget and not over-extend but would like to ensure that additional household budget checks are reasonable and fair.”
The HomeOwner Alliance’s guide on MMR can be found here: http://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/how-will-the-new-mortgage-lending-rules-effect-me/