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Porting - same amount & MCOB 11.8.1
kingstreet
Posts: 39,312 Forumite
I'm in the middle of some work on MCOB 11.8.1 which came into effect on 26/10/2012, in advance of the main MMR implementation in April 2014.
While I was doing it, I came across PS12/16;-
http://www.fsa.gov.uk/static/pubs/policy/ps12-16.pdf
where, in the table on page 20, it states that a lender is permitted to carry out no affordability assessment on an application to port where there is no increase in the amount to be borrowed.
This has an impact on 11.8.1 which applies to mortgage prisoners moving home. I'm not sure a lender will want to take someone else's interest-only, self-cert, high LTV "prisoner" even if it has the ability to do so under 11.8.1, but found the portability bit interesting.
http://fsahandbook.info/FSA/html/handbook/MCOB/11/8
It makes one wonder if lenders will perform an affordability check on the borrowers it wants off very low rates, waiving it for the more profitable customers it wants to keep?
The two bits of "guidance" here appear at odds with each other.
While I was doing it, I came across PS12/16;-
http://www.fsa.gov.uk/static/pubs/policy/ps12-16.pdf
where, in the table on page 20, it states that a lender is permitted to carry out no affordability assessment on an application to port where there is no increase in the amount to be borrowed.
This has an impact on 11.8.1 which applies to mortgage prisoners moving home. I'm not sure a lender will want to take someone else's interest-only, self-cert, high LTV "prisoner" even if it has the ability to do so under 11.8.1, but found the portability bit interesting.
http://fsahandbook.info/FSA/html/handbook/MCOB/11/8
It makes one wonder if lenders will perform an affordability check on the borrowers it wants off very low rates, waiving it for the more profitable customers it wants to keep?
The two bits of "guidance" here appear at odds with each other.
I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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