The FSA has made a change in the final rules of the Mortgage Market Review (MMR) concerning advised sales.

While most sales will have to be advised, advice will not be needed for simple contract variations – providing there is no increase in the amount to be repaid.

Brian Murphy, head of lending at Mortgage Advice Bureau, welcomed the late change.

He said: “A key change for the market is the amendment to advised sales, which state most mortgage sales will soon have to be advised. This will add to borrower protection and is clear recognition of the important role of independent mortgage advisers who counsel borrowers as to the most suitable product for their needs from across the market.

“It’s also great news for all those existing borrowers who’ve been trapped by tighter affordability requirements – the so-called mortgage prisoners. With immediate effect lenders have been told to use their judgement on affordability requirements for borrowers with a good payment history, which will prevent them offering less favourable interest rates or other terms and allow more borrowers to remortgage and even move lender.”