The Mortgage Market Review: What are the implications of increased regulation

After much consultation the FSA published its final version of the Mortgage Market Review on October 25th. The new rules arising from the Mortgage Market Review (MMR) will not change who will be lent to, but rather prescribe a more robust approach to income verification and affordability assessment.

The MMR requirements include an affordability assessment, stress testing around fluctuations in interest rates and the effect that this may have on mortgage payments, as well as a clearly understood method of capital repayment for interest only mortgages, not simply relying on rising property prices.

Analysis and a movement away form paper based processes will help lenders meet the new MMR requirements. For greater detail you can read my full Mortgage Market Review article here.