Only half of aspiring homeowners are aware of the Mortgage Market Review, according to new research by TSB.
Of those that are aware of the MMR, many still do not understand its impact, with 31 per cent of 1,982 adults having tried to find out more.
Of those seeking information, the 18 to 24 year-olds were the most likely to look for more information about the impact of MMR. TSB said this may be due to a lack of understanding of mortgages common among the next generation of first-time buyers.
However, 41 per cent of those made aware of the MMR felt it will ensure they can only borrow what they are able to afford, and after being offered a straightforward explanation of the changes, only 3 per cent felt they still did not know how the MMR may affect them.
The bank found that aspiring homeowners are now considering preparing for their mortgage application better by saving up as much as possible (53 per cent), checking their credit report before applying (49 per cent), pay off existing debts (29 per cent) and make sure they are on the electoral (21 per cent).
Ian Ramsden, TSB mortgages director, said: “Though the Mortgage Market Review is usually recognised as a positive change by people who understand it, many still have worries as it remains shrouded in mystery.”
He added that those applying for a mortgage should: “Break down your finances, work out how much you can afford and aim to future-proof your mortgage as far as possible by discussing plans with your mortgage adviser.”
