The Mortgage Market Review - what to expect

Let_Us_See

The new terminology will be unlimited and restricted and this will need to be shown on IDD.

amnblog

Leon_W wrote: »

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.

I went to one of those when the Labour party closed my grammar school

amnblog

Let_Us_See wrote: »

The new terminology will be unlimited and restricted and this will need to be shown on IDD.

Let me guess - your network told you this?

Leon_W

I'm quite aware that porting cases are treated as new applications Thrugelmir . All I am saying is they needn't be. There is no FCA rule that I can see to prevent porting of the mortgage on the same terms. In fact


“... an affordability assessment is not required for an existing borrower, staying with their existing lender, if there is no increase in the current amount outstanding... unless there is a material impact on affordability. This is the case whether the transaction takes effect through a contract variation, or a new regulated mortgage contract."


There you go. Why go through affordability if you plan on porting and repaying some of the capital in the process or even keeping the mortgage the same ? No point whatsoever. Just get on with it, value the new property and port the mortgage.


Of course, if there's extra borrowing then full affordability checks should be done, but for an existing mortgage ? Can't see it myself.

Let_Us_See

No, I read the FCA MMR regulations.

amnblog

let_us_see wrote: »

no, i read the fca mmr regulations.

4.4a.7 g (2)?

kingstreet

Since their launch, I've seen no mention of the "mortgage prisoner" rules the FSA introduced in October 2012 which allow lenders to suspend affordability and interest-only restrictions for those wanting a mortgage equal to what they currently have.

it would appear TCF is a thing of the past now and lenders are happy to see people stuck on SVR.

No surprise there then!

Bloomfield53

Is it possible to ask your lender the generic question "if I switch to a new fixed rate deal, what if any checks or affordability will you do ? "

amnblog

you can ask them what you want.

Bloomfield53

But they may not necessarily answer ? :-). Basically I want to ask them is it worth trying to move to a new fixed rate deal when my existing one ends, or will you start new affordability/credit checks that if I am then refused will cause me lots of unnecessary stress, and I will have to go on SVR anyway.