Applicants will now be required to provide evidence of their income, while lenders must also stress test borrowing against future interest rate increases.

The review came about in the wake of the credit crisis in an attempt to address the problems resulting from the lending excesses at the peak of the market.

In order to meet the MMR requirements, advisers must undertake a gap analysis using the tools provided by the FCA and have a plan to meet their standards prior to implementation of the rules on 26 April 2014.

This guide explains the Mortgage Market Review requirements, actions lenders and advisers need to undertake to meet the regulator’s standards and the impact these new rules are likely to have on the way you do business.

Contributors to this guide are Laurence Baxter, head of policy and research at the Chartered Insurance Institute; Richard Nuttall, head of policy of SimplyBiz Group; Robert Sinclair, chief executive of the Association of Mortgage Intermediaries (Ami) and Association of Finance Brokers (AFB); Martin Reynolds, chief executive of SimplyBiz Mortgages; and David Hollingworth, associate director of London & Country Mortgages.