Stupid new MMR rules !!!

kingstreet

No, most of that is ignored by many lenders.

You would get a higher mortgage amount going via a broker and having them establish affordability with different lenders.

Brock_and_Roll

On the bright side, as most couples have children the long term effect of MMR if sustained will be beneficial for family borrowers.

If lenders restrict the amount they are prepared to lend to families to buy family homes, then everything else being equal sellers of such homes will ultimately have to reduce their asking prices.

koexelek

amnblog wrote: »

The regulator gave the Lenders scope within the MMR rules to handle these kind of anomolies. 3.3.57

Lenders are generally choosing to ignore these opportunities.

a lot of lenders have interpreted MMR as MPR... Mortgage Prevention Rules:o

Thrugelmir

koexelek wrote: »

a lot of lenders have interpreted MMR as MPR... Mortgage Prevention Rules:o

Sensible lending policy will ultimately benefit everyone. Still got the issues from the past to wash out first.

Wh05apk

Thrugelmir wrote: »

Sensible lending policy will ultimately benefit everyone. Still got the issues from the past to wash out first.

Sorry where is the sensible lending policy?


I have a client, we are trying to do a rate switch with Halifax, they are saying the new rate at 2.89% is unaffordable, but she can carry on paying 3.99% as that is affordable! where is the sense in that?

Brock_and_Roll

Wh05apk wrote: »

Sorry where is the sensible lending policy?


I have a client, we are trying to do a rate switch with Halifax, they are saying the new rate at 2.89% is unaffordable, but she can carry on paying 3.99% as that is affordable! where is the sense in that?

Err Bank's current margin 3.99 - 0.5 cost of funds minus internal costs of circa 60bps = 2.89%

Margin if switched 2.89% - 0.5% COF - internal costs 60bps = 1.79%

Seems entirely sensible if they do not think that the borrower will be able to switch to a competitor!

Wh05apk

Brock_and_Roll wrote: »

Err Bank's current margin 3.99 - 0.5 cost of funds minus internal costs of circa 60bps = 2.89%

Margin if switched 2.89% - 0.5% COF - internal costs 60bps = 1.79%

Seems entirely sensible if they do not think that the borrower will be able to switch to a competitor!

From a business point of view yes, but from a "sensible lending"/affordability point of view no.

njc123

Well first direct can stick it lol we've been to see a broker today and got a 3 year fixed at the same rate as our current tracker with natwest who apperantly aren't so fussy and will lend us up to £150000 ish fingers crossed for an offer now.

john_white

Surely you can port the mortgage though? They are saying you can stay where you are and it's ok, but if you move you can afford less? Surely by that logic they can ask for immediate redemption of the difference?

njc123

I know john white it's madness they'll be the losers now though.