Nationwide plays down MCD impact
The society said it will not make any ‘material changes’ to its lending policy when it implements the Mortgage Credit Directive ‘in early 2016’ ahead of the 21 March 2016 deadline.
Nationwide will use the updated Key Facts Illustration (KFI) from day one rather than the European Standardised Information Sheet (ESIS) format.
Ian Andrew, managing director of group intermediary sales at Nationwide, said: “We believe that the introduction of the MCD regulations will have minimal impact.
“This is due in part to the fact that many of the measures build on the prior planning made by lenders and intermediaries as part of the last year’s Mortgage Market Review, with many MCD requirements that are needed in the UK already in place.
“Moreover, many of the additional measures involve technical changes that will not directly impact on the mortgage application process, nor on the ability of lenders to lend.”
He added: “Nationwide is also beginning a programme of communication with our intermediary partners and our BDMs are already available for the help and support needed as the changes are implemented.
“It is important that mortgage intermediaries familiarise themselves with their own obligations as a result of the MCD, including any additional permissions that will be required to conduct consumer buy-to-let business. This will help to ensure a smooth transition across the board to the requirements of the new regulations.”
Nationwide is adding additional questions to its application form to identify consumer buy-to-let borrower.
Intermediary websites NFI Online and TMW Online are being updated to be MCD compliant, while it will launch a communications programme about the changes.