April 26th implications

kingstreet

JohnDoe1 wrote: »

Will the MMR allow people with savings but no income to get a mortgage?

It should use more common sense and should be able to distinguish that the risk that someone with say £70k+ of savings but no earned income is probably better off than someone earning £20k with minimal savings. This is especially the case for BTL mortgages.

No. Income and affordability will become even more important.

BTL can be used as a backdoor self-cert route for those with bigger deposits and no/little income and the FCA does not want to see that happen.

Thrugelmir

JohnDoe1 wrote: »

It should use more common sense and should be able to distinguish that the risk that someone with say £70k+ of savings but no earned income is probably better off than someone earning £20k with minimal savings. This is especially the case for BTL mortgages.

So what's the person with no earned income living off? Be foolish to be reliant on a BTL property. That's where financial common sense comes into play.

M0ney

Often these things only affect England and Wales, I live in Scotland, will these changes affect me?

kingstreet

Yes - UK wide.

brenda10

kingstreet wrote: »

If a full application hasn't been submitted before the lender's M-Day, it will have to be resubmitted under the MMR regime.

Abbey/Santander is closing its online system on Friday and will reopen it under the new rules on Monday next week.

Kingstreet, application through L&C with Sant/Abbey, was told our full application went to underwriter on 27th March, no confirmation yet if application successful.


Could these new changes affect our application if not confirmed yet, would you be calling to check and try to hurry things along as quickly as possible? Thanks.

The_One_Who

I am currently in the early stages of house-hunting. I am living with parents and so have very few outgoings, so how would I be able to show a lender that I could afford the mortgage?

I have a regular income, no debts (other than student loan), and a deposit of roughly 50%.

amnblog

The_One_Who wrote: »

I am currently in the early stages of house-hunting. I am living with parents and so have very few outgoings, so how would I be able to show a lender that I could afford the mortgage?

I have a regular income, no debts (other than student loan), and a deposit of roughly 50%.

By providing your wage slips and bank statements.

amnblog

brenda10 wrote: »

Kingstreet, application through L&C with Sant/Abbey, was told our full application went to underwriter on 27th March, no confirmation yet if application successful.


Could these new changes affect our application if not confirmed yet, would you be calling to check and try to hurry things along as quickly as possible? Thanks.

Cases in before close of business last Friday should go through under the old system.

brenda10

amnblog wrote: »

Cases in before close of business last Friday should go through under the old system.

Thanks for your reply. Have a good Sunday.
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Midnight_Tboy

Hi, we have just had a DIP from the EA broker and house offer accepted Friday afternoon. We are looking at a quick purchase hopefully (as first time buyers and house is literally 3 doors from where we rent). I'm not sure how fast from day 1 of acceptance that the final application is processed, so wondering if this will likely affect us too