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No affordability check when switching to new deal?
agent177
Posts: 7 Forumite
I saw this today on BBC:
https://www.bbc.co.uk/news/business-63486782
"An agreement between lenders, the Treasury and regulators means people can switch to a new fixed-rate mortgage, without a new affordability test, when their current deal ends, as long as they are up to date with payments."
Does anyone know anything more about this? E.g. does it apply to the existing lender deals only? It's the first I've heard of it.
https://www.bbc.co.uk/news/business-63486782
"An agreement between lenders, the Treasury and regulators means people can switch to a new fixed-rate mortgage, without a new affordability test, when their current deal ends, as long as they are up to date with payments."
Does anyone know anything more about this? E.g. does it apply to the existing lender deals only? It's the first I've heard of it.
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Comments
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Most lenders do not do new affordability tests if you renew with them and do not have missed payments and are not seeking additional borrowing, they already have the liability so it does not need to be assessed in the same way. A new lender would check affordability as they would be taking on a new liability if they allowed someone to borrow from them.agent177 said:I saw this today on BBC:
https://www.bbc.co.uk/news/business-63486782
"An agreement between lenders, the Treasury and regulators means people can switch to a new fixed-rate mortgage, without a new affordability test, when their current deal ends, as long as they are up to date with payments."
Does anyone know anything more about this? E.g. does it apply to the existing lender deals only? It's the first I've heard of it.1
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