FCA launch guide ahead of MMR

Around half a million copies will be distributed to borrowers in branches of high street lenders, mortgage advisers and estate agents.

Under the MMR every borrower will now have to prove that they can afford the repayments both now and in the future to ensure people only get a mortgage they can afford.

Martin Wheatley, the FCA’s chief executive, said: “In the past too many people got a mortgage by simply telling their lender they would have no problem repaying their debt, and that was that.

“Getting a mortgage can be one of the biggest financial decisions people will ever make, so it needs careful consideration.

“Our new rules will hard-wire common sense into mortgage lending, and the guide we have created will help explain those changes to borrowers.”