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MMR Affordability Rules
charlesb80
Posts: 4 Newbie
Can anyone tell me exactly what the rules are? I am specifically interested in whether the rules state that whether the affordability calculation must be accurate. e.g. if a lender is aware that they are declining a loan based on affordability and that they admit that their affordability calculation is inaccurate are they complying with the rules?
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Comments
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The lenders affordability calculator is accurate.
It forms part of their submission to the regulator.
Whether or not a potential borrower agrees with the way it works is irrelevant.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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 -
I have an admission from the lender that it is not accurate under a specific circumstance (which is my circumstance). Even if the situation is unlikely, it does not mean it is impossible.
Could you let me know what the rules are concerning this situation?0 -
Not really unless you state what the 'circumstances' of your particular situation are. No one has a crystal ball, you would only ever get a best guess.Debt Free! Long road, but we did it
Meet my best friend : YNAB (you need a budget)
My other best friend is a filofax.
Do or do not, there is no try....Yoda.
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I'm not entirely sure what you're asking, but I think you're asking if a lender must be "fair" in their affordability measurements, if so: a lender can deny anyone for any* reason, meeting their affordability requirements does not grant you the right to a mortgage with that lender, so whether or not their calculations are "right" or "wrong" is irrelevant.
http://www.fca.org.uk/firms/firm-types/mortgage-brokers-and-home-finance-lenders/mortgage-market-review0 -
If the lender says no - there is no law to make them say yes.
Perhaps if we knew more about this circumstances we could guide you further.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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 -
charlesb80 wrote: »I have an admission from the lender that it is not accurate under a specific circumstance (which is my circumstance). Even if the situation is unlikely, it does not mean it is impossible.
Could you let me know what the rules are concerning this situation?
Online calculators can only ever be guides and indicative. They are in no way offers to lend. Not least they are very simplistic and do not account for all the the multitude of permutations surrounding individual borrowers circumstances.0
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