By April 25, 2014 Read More → comments on the FCA’s new mortgage rules


New mortgage lending rules, developed by the Financial Conduct Authority (FCA) following its mortgage market review, will take effect from Saturday 26 April, and will see prospective homebuyers and movers facing more scrutiny of their outgoings when applying for a mortgage.

Matt Sanders,’s mortgage spokesman, said: “For some time now lenders have been requiring more information about people’s earnings and outgoings in order to make a decision on whether or not to approve a mortgage application. As such, the application process is unlikely to be affected much further by the FCA’s new rules and people shouldn’t be put off looking for a mortgage.

“It’s also worth remembering lenders want to make funds available to people, they just need to ensure that their customers will be able to meet their repayments and avoid having their homes repossessed, so the FCA’s rules are, for the most part, simply good practice. Banks and building societies will be keen to maintain momentum while mortgage lending is still on the up, so it will be interesting to see how they apply these rules and the effect it has on those applying for a mortgage.

“If you’re looking to remortgage, or apply for a new mortgage, there are a number of steps you can take to improve your chances of being approved – and these were true prior to the FCA’s new rules being introduced, too:

Check your credit score and ensure the details contained therein are accurate. If they’re not, make sure you ask to have them updated. And if you have lots of available credit that you don’t need, consider either closing those accounts or reducing your credit limit.
Review your outgoings – it’s unlikely that lenders will frown upon your regular Friday night takeaway treat or trips to the cinema, but if you’re paying for memberships or subscriptions that you don’t use, or could improve your cash flow by shopping around for cheaper alternatives, then it’s worth doing so.
Make sure you’re on the electoral role as this will help to prove your identity. Your credit file should tell you if you are on the electoral role but you can also find out from your local council.
Use a broker, such as the fee-free service available through, as this will help you identify the mortgages that you’re most likely to succeed in applying for, and you’ll only have to go through your finances and other details once, rather than individually with each lender.”

Posted in: Mortgages

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