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Santander Mortgage Stuck on Standard Rate
Comments
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Someone owes £x.
After the transaction they still owe £x.
That is the point, in a nutshell.
No-one is suggesting anyone be allowed to borrow any more than they already owe.
"Much of the noise is emanating from brokers."
If that's the case, it's because the regulator told lenders that's how they were supposed to operate. How can we be expected to comply with rules some organisations choose to ignore?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »If that's the case, it's because the regulator told lenders that's how they were supposed to operate. How can we be expected to comply with rules some organisations choose to ignore?
Well that's not strictly true is it.
The regulator said lenders could operate that way if they wanted to.
Is it any surprise that the lenders don't want to?
Perhaps the regulator should have thought a bit more about these 'rules'?0 -
Having some first hand experience of the regulatory environment (albeit not in banking) I can fully understand the banks not taking advantage of these transitional arrangements. The risks inherent when rules are not hard and fast must be a significant concern.0
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I can understand why XYZ doesn't want to take on ABC's borrower without carrying out the usual checks.
What I have an issue with, is XYZ applying checks to existing customers wanting nothing but a new rate, in the face of TCF, transitional rules and no increase in the risk/lending as the lender is already holding it.
"They signed up for SVR after their initial offer so now they should swallow it as it's what they agreed to" has already been well used in this thread.
FWIW as a broker I get nothing from new deals with existing lenders such as Santander, so if anyone wants to suggest I'm espousing this for selfish reasons, you are way wide of the mark.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
What would have happened in your scenario pre MMR changes?0
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I'm not quite sure what you mean but some lenders have been ignoring the transitional rules since they were announced and implemented on 26 October 2012, so we're two years in, not six/seven months.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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Doesn't the 'rule' specifically state that it is lender's discretion as to whether it applies transitional arrangements?0
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Yes - it is called leaving the foxes to guard the hens.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
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