MMR -new rules

justjohn

Is MMR based solely on disposable income.

if applicant is SE and has 5-10k going into a savings account per annum then application is decided on that?.(obviously other bank accounts would be look at for consistency)

Are payslips/certified accounts no longer the be all and end all

kingstreet

No. You will still be assessed on your net profit from your accounts or SA302s, usually an average of the last two years.

The change with MMR is about your outgoings. Things like student loans, childcare, school fees, ground rent & service charges will all form part of affordability calculations.

Some lenders are going totally anal and analysing every entry on your bank statements, while others are using Office Of National Statistics figures to set a benchmark for your household and only looking at bigger items, such as those mentioned earlier.

justjohn

so the new rules are just a secondary check for affordability?

with no benefit to the applicant?

spidereyes

justjohn wrote: »

so the new rules are just a secondary check for affordability?

with no benefit to the applicant?

I think the point is to make sure that the applicant is not borrowing more than they can afford to repay and leaving themselves open to missed payments etc should interest rates rise.

Every lender is different but i know that Natwest have said that in terms of affordability not much has changed for them with the new rules, they use ONS figures anyway, they just look at bigger expenditure that is not considered the norm as mentioned above

kingstreet

justjohn wrote: »

so the new rules are just a secondary check for affordability?

with no benefit to the applicant?

TBH I struggle to remember anything the SIB/LAUTRO/FIMBRA/MCCB/PIA/FSA/FCA has done which has benefitted the applicant.

It's debatable whether that is, or should be, the role of a regulator...