New Rules - Mortgage Applications

sirich99

Hi


I keep seeing brief references to new legislation coming in next month with regards to mortgage applications.


Can anyone tell me what these changes are??


Thanks

ACG

Affordability changes in the main.

It varies from lender to lender as per their interpretation of it.

Some lenders have made changes already in readiness, some are not making any changes and some are yet to make them.

amnblog

If you are really interested it is all on the FCA website.

Thrugelmir

sirich99 wrote: »

Can anyone tell me what these changes are??

Onus will be on lenders to ensure that lending is made on a responsible and affordable basis. So lenders will need to satisfy themselves as to the applicants circumstances. Given the PPI scandal. Easy to understand the direction that lenders will approach the matter from.

With improved Credit Reference Agency data, now that utility companies are also reporting. Far easier than it was even just a few years ago to analyse an individuals behaviour and attitude towards their finances.

amnblog

and interest only changes, and further advances, and adding fees, and paying fees, and non advised business, and all this will mean changes to costs and service standards etc etc

sirich99

Will any of these changes affect my current mortgage application? It is with Natwest, submitted on 20/03/14 and is at the valuation instruction stage

Thanks

Thrugelmir

Given the nature of the changes. Much will already be rolling into place now in a phased manner in preparation of the 26th April. Not least staff training and trial system testing which is bound to cause delays from a customers perspective.