New rules to prevent people taking out mortgages they can’t afford have now come into effect.

One of the key changes is that in most cases, people will need to get help from an adviser before taking out a mortgage.

This will help borrowers to better understand whether they can really afford their mortgage, both now and when interest rates rise.

It’s also been confirmed that there will be no return to self-certification mortgages, and lenders will always have to check a borrower’s income.

People taking out an interest only mortgage will need to show how they plan to repay the full loan once the interest only period ends.

Martin Wheatley, Chief Executive of the Financial Conduct Authority which has introduced the changes, said: “There has been huge effort both by the regulator and the industry to get to where we are today. We do not want to see mortgage lending return to the practices of the past where people were taking out mortgages they simply couldn’t afford.   

“While for some borrowers the questions being asked may seem more detailed, they should feel confident that practices which led to hardship and anxiety for consumers in the past will not be repeated.”

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