New mortgage rules, set by the Financial Conduct Authority (FCA) and imposing tougher affordability checks and income verification requirements, are coming into force in the UK.
The mortgage market review (MMR) is the biggest change on the market for more than a decade. However, the Council of Mortgage Lenders (CML) sought to reassure consumers that the transition to the new rules would be smooth.
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Martin Wheatley, chief executive of the FCA, said: "The core principle is a very sensible one – lend to people what they can afford to repay.
"We’ve come out of a period, particularly in 2008-09, when there was no attempt to verify people’s ability to pay, and we’ve ended up with lots of payment problems, lots of people in mortgages that are problematic for them."
Mortgage applicants will be interviewed by a lender and face questions about their income and lifestyle, possibly including childcare costs and haircuts.
Brokers said that the changes could lead to delays and rejections of applications.
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By GlobalDataMany lenders have already changed their systems to comply with the new rules.
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