Remortgages are due to be more complicated for home owners with the new Mortgage Market Review (MMR) due to come into play starting Saturday.  While there are many lenders that have fully adopted the guidelines before the deadline, the full impact will now be felt by many homeowners that are likely to be caught unaware of the changes.  The MMR was placed upon lenders in an effort to protect borrowers from entering into loans that they cannot afford.  By putting an end to irresponsible borrowing the borrower is protected as well as the lender and the UK economy.

Homeowners will have their spending habits examined, they will require confirmation of income and lenders will put the borrower’s ability to afford the proposed remortgage against a stress test to determine if the loan is affordable should interest rates increase.  Another feature of the MMR is for borrowers to receive free financial advice and counseling when they apply for a mortgage or remortgage.  This will be a time for the homeowner to ask questions, make sure they are aware of the intricate parts of the loan, fees associated with it and of course the term and type of remortgage such as whether it is a fixed rate remortgage or other type.

Remortgage brokers are expected to be in demand by homeowners that would appreciate their expertise and experience with the new process.  Brokers can also be helpful due to the experience working with a wide range of lenders as well as the fact that they often know of remortgage deals not made available directly to homeowners.

The MMR can seem at first to be more red tape and paperwork but in the end it should help keep homeowners well educated to their choices and assist them in gaining the loan best suited to their needs and financial health.