There is news out today that mortgage lending in the UK fell again in March, according to the latest Bank of England figures.
The number of mortgages approved in March fell to 67,135, down from 69,592 in February. Approvals have now fallen by 11.9 per cent in the last two months.
A possible explanation being given is that banks and building societies may have tightened up on lending procedures even before the Mortgage Market Review (MMR) rules came in at the end of April.
The MMR rules are designed to protect consumers from reckless mortgage lending that would leave them unable to make repayments.
Applicants will face tougher questions about their lifestyle, including regular outgoings such as childcare costs and right down to smaller payments such as haircuts.
While consumers need support whilst taking a step up on the housing ladder, it is encouraging to see greater care being taken as to whether borrowers are genuinely in a position to repay their loans.
If their incomings do not support this, and they have no safety net in place to fall back on, they will be a very vulnerable position.
Several Credit Unions across the UK are now live with CUNA’s Debt Waiver,which kicks in when borrowers face an unexpected period of loss of income. A business-to-business deal, the lender takes out the insurance and this comes at no extra cost to the borrower.
Financial security cannot be overlooked, and we are in a position to help.