Today the European Parliament passed what is called the “European Mortgage Credit Derivative”.
This is a new set of rules which unify mortgages taken out anywhere in the EU. Some of these rules have already been factored in for April next year in the UK when the Mortgage Market Review comes into force. This means individuals seeking new mortgages will be asked more questions around affordability not just now but for the future should interest rates rise.
It’s not very well publicised yet but it may have an effect on your mortgage application come April 2014. The most likely effect will be you may need to produce more documentation to the lender and go through a more comprehensive advice interview with your adviser. Mortgage Solutions reports on some of these things today in their article.
There will be more articles published around the review in the New Year.
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