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April 26th implications
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As soon as you have your mortgage offer, there are no further stages of underwriting by the lender, so you should be fine. It's over to the solicitor from that stage and the lender just releases the funds to the solicitor when needed.I am a mortgage adviser.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.0
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What are these implications please?0
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The biggest change is that the onus on checking affordability is now squarely on the shoulders of the lender, rather than the applicant or broker, meaning there is now no such thing as a 'fast track' application (fast track cases are those which pass at the highest credit score, with usually more than 20/25% deposit).
This means EVERY application is now going to be fully assessed in terms of affordability, verifying income etc, and so creating a bottle neck in terms of mortgage processing speeds.I am a mortgage adviser.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.0 -
Ohh I see, so not much change for those who won't be applying for a fast track mortgage?0
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Where previously some lenders may have ignored student loans, ground rent and service charges, childcare, maintenance, school fees in affordability, these will now be taken into account and maximum borrowing reduced accordingly.
Where you could currently run a mortgage to just before age 70 without evidence of income in retirement, that's now being amended to 67.
Some lenders will forensically scrutinise bank statements and question any expenditure it cannot justify.
Finally, some lenders will still deduct the cost of credit commitments even when they are being repaid at completion, as Santander currently does. They would have to have been repaid three months or more prior to the application for them to be ignored.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.0 -
What about Agreement/Decisions in Principles?
Are they worthless now?0 -
How awful, we were always told student loans wouldn't count!!
Can you get a mortgage approved without having the specific property you want to buy?0 -
Be interesting to see if the lending criteria loosens to offset any drop of revenue MMR creates ....0
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kingstreet wrote: »
Finally, some lenders will still deduct the cost of credit commitments even when they are being repaid at completion, as Santander currently does. They would have to have been repaid three months or more prior to the application for them to be ignored.
Do you know which lenders will do this? Are Halifax and Nationwide going to?0
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