Mortgage brokers and remortgage brokers are likely to see a boost due to the latest change in mortgage lending.  The new Mortgage Market Review (MMR) which is due to go into effect the end of this week will require a stricter process for borrowing.  The intention of the MMR is to stop borrowers from getting into a mortgage they cannot afford, especially when interest rates begin to increase.

Borrowers will face invasive questions into their spending habits and lifestyle to give the lender a clearer indication as to whether the loan they are considering is affordable.  According to some reports there have been lenders that have questioned borrowers as to the weekly food costs, childcare costs and other spending habits such as entertainment expenditures, travel costs and even gym memberships.  The purpose is to fulfill a stress test on whether the borrower is capable of paying back the loan without financial difficulty or ruin.

With the reforms put into place by the Financial Conduct Authority (FCA) with the MMR, the process of obtaining a mortgage or remortgage will be longer and more in depth.  This is why home buyers and home owners will be in demand of the services of brokers. 

Brokers work for the borrower rather than for the lender.  This means the broker is in the service of offering guidance in finding the right lender and loan to match up the needs of the borrower.  They also have available offers from lenders that are not on the general market to other borrowers that go directly through the lender.  With their experience of working with a wide variety of mortgage and remortgage situations and being familiar with the new MMR requirements, the process could end up less lengthy, confusing and less stressful with a broker assisting the home buyer or home owner in obtaining the best mortgage or remortgage deal available on the market.