MSE News: Urgent warning: EU remortgage rules could create mortgage prisoners

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MoneySavingExpert.com explains how new EU rules could affect you if you're looking to remortgage...
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Urgent warning: EU remortgage rules could create mortgage prisoners

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Urgent warning: EU remortgage rules could create mortgage prisoners

Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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Whilst I agree refusing to transfer a client to a lower rate of interest due to affordability, and therefore ensuring a higher monthly mortgage payment, is an oxymoron. However, lenders exist to make a profit, and an applicant is made aware their initial rate will revert to the SVR with no guarantee of a product switch prior to submitting the original application.
Some lenders seek to retain their clients with a product transfer, whilst others don't.
Could someone please help with a clarification on this article?
I am on a 10 year mortgage with a 2 year fixed period which reverts to standard variable after two years.
I have asked the lender whether I would be able to move on to a cheaper tracker rate in 2 year times without a new affordability check in 2 years time. They said yes I can move to the best available tracker at that time for my LTV. They were not aware of this new EU rule.
I any event they said technically changing the rate is not the same thing as remortgaging. Remortgaging means taking a new loan to refinance and old one. So it seems this rule should only affect people looking for a new loan and not people changing rates on an existing mortgage. Do you agree with this?
This article can be very misleading if they don't clarify this point.
I look forward to hearing your thoughts.
Best regards
Nothing will happen until 2016. UK mortgage markets are now among the best regulated in Europe. So I wouldn't get worked up about the EU directive.
The MMR was the result of poor lending practice not the EU directive.
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