Only half (51 per cent) of aspiring homeowners are aware of the Mortgage Market Review (MMR), new research shows.
Of those that are aware of the MMR, many still don’t understand its impact as nearly a third (31 per cent) have tried to find out more about it, according to the study from TSB.
Interestingly, 18- to 24-year-olds are the most likely to look for more information about the impact of MMR (75 per cent), perhaps because a lack of understanding of mortgages is common among the next generation of first-time buyers.
Ian Ramsden, TSB mortgages director, says: “Though the Mortgage Market Review is usually recognised as a positive change by people who understand it, many still have worries as it remains shrouded in mystery.”
He adds: “Don’t panic, but do prepare for your mortgage application with some straightforward, simple steps: break down your finances, work out how much you can afford and aim to future-proof your mortgage as far as possible by discussing plans with your mortgage adviser.“
Applying for a mortgage?
- Check with your bank or building society how much you can borrow before searching for properties
- Have realistic expectations about what you are able to repay – work out how much you earn, spend and what you spend it on
- Check your credit report
- Save as much as possible – the bigger your deposit, the lower the cost of your mortgage is likely to be
- Ensure you are on the electoral roll
- If you’ve never had any borrowing, take out some form of credit such as an agreed overdraft or a credit card, but ensure you pay it back regularly to build your credit rating.
- Ensure you have a plan in place to repay any existing debt before you borrow any more.
- Improve your understanding of mortgages – check out the free Money Advice Service or speak to a mortgage adviser
