Precise ready for MMR
All cases must be advised basis from the 15 April, while the five year forward sterling rate will be used for affordability stress tests.
For credit impaired customers where repaying debt is required to meet affordability rules the conveyancer acting for the lender will be required to repay the creditors directly.
Alan Cleary, managing director of Precise Mortgages, said: “We have always aimed, as far as possible, to be MMR ready so brokers should experience virtually no change to the information they have to give us.
“Our affordability calculator, which is available to brokers at point of sale, has always stress tested borrowers’ affordability, so the changes we have made for the new MMR requirements should have virtually no impact.
“There are some items to consider as we transition to the MMR rules, which are clearly described on our dedicated MMR website page.”
For bridging loans, effective from 1 April, the maximum term has been reduced by 12 months, all cases must be on an advised basis, while lenders will no longer accept cases where interest payments are serviced from income.