How to pass the new mortgage rules

25 April 2014

If you're buying a home or wanting to remortgage, new rules are being introduced that could affect your plans.

From 26 April, Mortgage Market Review (MMR) rules officially come into force, requiring lenders to be far more diligent about who they lend money to.

The Financial Conduct Authority, which is responsible for the changes, wants to make sure the bad old days of mortgages being handed out willy nilly - sometimes even without proof of a borrower's income - stay firmly in the past.

Here's our checklist of the things you will probably be asked to provide:

Find the best mortgage for you

Monthly expenditure:

* Rent
* Council tax
* Gas
* Electricity
* Water
* Food (groceries and eating out)
* Petrol and car maintenance
* Landline
* Broadband
* Mobile phone
* Car insurance
* Buildings and contents insurance
* Pet insurance
* TV Licence
* Student loan

Other outgoings:

* Childcare
* Gym membership
* Haircuts
* Gambling

Outstanding debt:

You'll also be asked for any outstanding balances you have on the following, in addition to your monthly outlay on them:

* Credit cards
* Store cards
* Personal loans
* Furniture loans
* Car loan
* Overdrafts

The questions are designed to give the bank or building society a comprehensive overview of your spending habits so it can ensure you are able to keep up with your mortgage payments, even if rates rise.

Other things you will be asked to provide:

* Bank statements (up to a year's worth in some cases)
* Your latest P60
* Statements of all outstanding debt (including everything from credit cards to a student loan).

And don't forget…

* Check your credit score and ensure it's accurate. If you find any errors, or your circumstances have changed, ask the credit agency to update it.
* Make sure you are on the electoral role. This makes you look a responsible member of society and lenders like it.

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