The Mortgage Market Review - what to expect

kingstreet

Leon_W wrote: »

I'll have to join you Bloomfield. My fixed rate ends in February next year but hopefully by then Halifax will see the error of their ways ! Quite simply, affordability checks are not required as far as I can tell (I've read the FCA guides !)

Halifax is privately admitting it plans to use the PT process to gradually wean borrowers off Int Only.

If it sees you can afford to pay more, it will only agree to a PT if you agree to switch part from IO to C&I.

amnblog

Bloomfield53 wrote: »

i

Would these rules affect me as an existing customer just switching to a new deal with my existing lender ? I have a mortgage with the Halifax. Fixed rate deal due to end in August. My outstanding mortgage is around 65% of my house value. I have never missed a payment in the 10 years I've had the mortgage, but I do have more unsecured loans than I used to. ( never missed a payment on anything) Will they start credit scoring and asking lifestyle things just to switch to a new fixed rate ? It seems it is safer to accept variable rate and pay more than apply to take a new fixed which seems very silly.

Halifax have told us they will review data on some product switch cases. Best to approach this via a broker.

amnblog

glossychops wrote: »

Hi,

I have just been told by an estate agent that come tomorrow (26th April) an AIP is not valid unless it is tied to a specific property and that lenders should now provide Mortgage Certificates.

Is this correct - if so what is the use of an AIP in confirming to a seller/agent that you are able to make a sound offer for a property as you won't get one until you request one based on an actual property?

What is a Mortgage Certificate and how does it compare to an AIP?

Any further light that you can shed on this would be very helpful as I am a First Time Buyer new to this.

Usual nonsense from an Estate Agent.

Ignore all this, and engage an independent mortgage broker
(not one that works with the Estate Agent)

Let_Us_See

amnblog wrote: »

I’m sure my other independent mortgage broker colleagues on this forum will have much to add and that this site will continue to be a source of support and information.

Amnblog I liked your post for promoting independent mortgage brokers, but you do realise under MMR the term "independent" will no longer apply?

Leon_W

Hi Kingstreet


Halifax can try and wean me all they like but they'll not succeed ! I do have plans to repay the capital which is sale of my home, but as you know, that is deemed as not an acceptable repayment method. Just because they say it's unacceptable doesn't mean it's not credible though. My house is too large for us when my daughter leaves home so we'll be downsizing. There is enough equity.


Halifax won't see it like that though and use it as an excuse to charge the SVR. Very clever.


By the way. liked your comment about " the jaws of MMR" . Too true !

amnblog

Let_Us_See wrote: »

Amnblog I liked your post for promoting independent mortgage brokers, but you do realise under MMR the term "independent" will no longer apply?

It will in my office

classy69

Does anybody know Barclays / Woolwich's stance on product switches with regard to the new MMR rules?

Let_Us_See

But not on your IDD, business stationery or advertising material. Under MMR there is no such classification as independent or Whole of Market when referring to a mortgage broker/adviser.

Leon_W

Just as people were starting to know the difference between whole of market and independent they have to go and screw it all up again.


If you're interested I've gone with "comprehensive". Seems to describe me adequately.

Thrugelmir

Leon_W wrote: »

Just to add. We get a lot of posts here about porting mortgages. Lenders always treat these as completely new applications with wage slips and bank statements etc even when part of the mortgage is being redeemed and maybe downsizing. This can lead to big problems if income has fallen and you quite often find people trapped in properties because the lender will not port the mortgage, even for a lower amount.


Again, ludicrous.

Porting has always been a new application. There's no reason why it shouldn't be. Ludicrous to suggest that applications should be waved through.

This is why responsibility has been from brokers under the new regulations. Professional standards have slipped. Too much rule bending. A belief from individuals that there's an entitlement to borrow money. The new rules merely wind the clock back to when things were done properly.