If you are considering a new mortgage or any additional borrowing against your home I'd advise to do it now, or at least before 28/04/2014 as that is when new regulations will come into affect.
1. First of all, all secured loan providers will be required to run affordability checks on all applicants. Many banks and building societies have been doing this for a while in preperation anyway. This will mean that applicants will not be able to borrow as much as they traditionally have been able to, under income multiples previously. When you ring up for a loan you will be asked about all your income and outgoings, fixed and fluctuating.
2. All applicants will be pushed towards an advised service for mortgage product and term. Previously the secured lending market worked under non advice and advised. Very few people went down the advised route and opted to select their own mortgage product and mortgage term. All the lenders have been training their staff over the last few months to get them qualified and competent to give mortgage advice for april. What this means to the ordinary person is that the process will take much longer and will more complex. The non advised process over the phone normally lasts about 30 minutes but under the advised process it is more likely to be an hour and a half to 2 hours even before you get the figures.
3. The regulation means there will much more stringent checks. Generally all applicants will be asked for 1 months bank statement, some lenders are asking for 3 months bank statements. This is to show that you have the surplus available to cover the increase in the mortgage, so if you have an overdraft and use it regularly expect to be declined. They will also be checking for any unpaid direct debits and all your outgoings that you declared at quote stage will be checked. So, if you want to increase your mortgage get in credit and stay there, at least until your mortgage is complete.
If you have an Interest only loan or part loan expect some very rigorous questioning, if you have a payment plan (endowment for eg) then you will have to provide evidence of it and that it will be suffcient to cover the loan it's meant for. The number of things that can be used to repay an interest only loan has been reduced for lots of lenders, downsizing for example is mostly no longer acceptable. Although realistic these sort of things cannot be quantified until it happens and so have been scrapped.
If you are seen to have an appetite for credit you are more likely to be declined. If you are the sort of person with several credit cards with debts on, car finance, personal loans for this and that, lenders don't like you and will tell you do to do one, espicially if your total debt is more than your gross basic salary.
4. Settled and stable is good. If you're thinking of moving employment and a new mortgage, make the mortgage app first. If you're thinking about a new car loan make the mortgage app first.
5. Changes in lending policy. A lot of secured lenders will be scrapping debt consolidation. Given the nature of advice debt consolidation is very complex and most lenders will be choosing not to offer debt consol in the early days of advice, although this is likely to return.
Thats it. If you want to read up on it online further serach for MMR (mortgage market review)