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Your last chance to speak up on MMR
The Financial Services Authority’s Mortgage Market Review is coming towards the end of its consultation period so if you want to have your say you need to submit your response to the FSA by January 30.
Some of the discussion points that affect the distribution and sale of mortgages include significant changes to fast-track and self-cert mortgages that effectively ban these types of deals.
Also, if the MMR is passed in its current form lenders will become responsible for ensuring mortgages are affordable for borrowers. This will inevitably mean lenders will have to do a lot more work to ensure they are complying with regulations.
Certain charges linked with the sale of mortgages will come under more scrutiny, specifically where these are considered excessive or unfair. This would capture both early repayment charges and arrangement fees.
In relation to arrangement fees there are questions about whether these should be allowed to be added to loans or paid upfront. The regulator is keen to get industry views on the potential impact of such a move.
Limits on the amount of equity borrowers are allowed to withdraw from their homes are also proposed and this may be an area of interest to mortgage distributors and advisers.
The key thing is that if you want to have your say you need to submit a response to the points in the MMR that affect you soon.
ALAN CLEARY
MANAGING DIRECTOR
EXACT
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