The UK mortgage market review (MMR) could mean access to bigger loans for some borrowers, according to some mortgage specialists.
The new mortgage rules, set by the FSA and coming into force on April 26, are designed to make the market more "sustainable" and to avoid a repeat of the recent financial crisis.
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They aim at ending the practice of some lenders, mainly building societies, of underwriting on the basis of income multiples, by imposing tougher affordability checks and income verification requirements.
However, head of mortgage policy at the Building Societies Association Paul Broadhead said: "It means that if you live a fairly prudent lifestyle, it could lead to more generous loan sizes."
This position is also supported by Ray Boulger, senior technical manager at mortgage adviser John Charcol: "If a lender has been using income multiples and is now moving to affordability, then, even taking into account other expenditure, they may have a larger maximum loan.
"Those who end up with a lower loan will have a lot of other financial commitments."
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By GlobalDataLast months, brokers said that the level of detail required in the new expenditure forms was "forensic".
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