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Wed 03 Sep 2014

Mortgage rules 'confusing half of all borrowers'

Many mortgage borrowers remain unaware of the changes to the sector that MMR has wrought.

 

New figures published by lender TSB have revealed the extent to which borrowers up and down the country are continuing to be confused by the latest rules implemented as part of the Mortgage Market Review (MMR).

 

Just over half (51 per cent) of aspiring homeowners in the UK are aware of the changes that have been brought in through MMR, although in the 18 to 24-year age category this figure falls to less than 25 per cent. 

 

TSB Mortgages director Ian Ramsden commented: "Though MMR is usually recognised as a positive change by people who understand it, many still have worries as it remains shrouded in mystery." 

 

However, he advised there are a number of steps that can make the process of conforming to the new MMR guidelines that much more straightforward for borrowers, such as saving up as large a deposit as possible, paying off existing debts, regularly checking one's credit report and having a realistic view of the amount they can afford to repay.

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