It’s been nearly a year since the Mortgage Market Review (MMR) was implemented across the industry, to enhance consumer protection. Many of these rulings have been embedded nicely and, quite rightly, everyone who speaks with a customer must hold the relevant mortgage qualification. However, the one ruling that seems to be taking a little longer to implement affects the subject of Transitional Provisions. So what does this mean? In short, there are provisions in the MMR that allow lenders to provide a new mortgage or deal to customers with existing loans who may not meet the new MMR requirements for the loan. The borrowing is not normally able to exceed the amount of their current loan (this decision remains with the lender). Transitional Provision was designed to help customers who think they have become ‘mortgage prisoners’ due to a change in lending criteria since MMR. This includes items including strict income multiples, or interest only customers for example. Each lender should now be offering the ability to assist existing customers, or attract new customers without the requirement to meet all of the new and slightly tighter MMR rules, including waiving affordability checks for customers who have a good payment history and no material changes. What you are not seeing just yet is lenders advertising this ability. Always ask!
Nationwide House Price index suggest that
UK house prices fell by 0.1% in February, compared to a 0.3% increase in January. The average house price now sits at £187,964 (up from £177k in 2014).
And finally…..a huge thank you! In the recent Mortgage Strategy Awards 2015, the mortgage Oscars of our industry, AToM was voted a fantastic 3rd in the Best Specialist Mortgage Broker/Distributor. For such a small company in a huge national industry, this was a great achievement and credit to the superb team we have at AToM!