In the past, some people were allowed to take out a mortgage they could not afford. This led to some of them falling behind with their payments or losing their home.
We have looked at how the process of getting a mortgage can be improved to prevent these problems. As a result we introduced new rules on 26 April 2014, to make sure that when you take out a mortgage:
The rules cover mortgages where you use your own home as security for the loan, but do not cover buy-to-let mortgages or second mortgages.
A mortgage lender must check that you can afford your repayments now and in the future. To do this they will need information about your income and outgoings.
They will also look at how a rise in interest rates might affect your ability to keep up with your monthly payments.
You can get advice about mortgages directly from a lender (like a building society or bank), or from a mortgage broker or financial adviser.
In some circumstances you can apply for a mortgage without taking advice. However, you would have to know the details of the mortgage you want and be able to arrange it yourself without speaking to an adviser.
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