Analysis: Apply common sense to new rules


Does anyone else wonder when lenders will employ the transitional powers bestowed on them when the MMR was announced? I remember hearing at my FCA briefing that lenders would be allowed to provide a new mortgage or deal for customers who did not meet MMR requirements as long as the borrowing did not exceed the amount of their existing loan.

I have battled for months to get lenders to provide rates for existing borrowers or convert current loans to part-and-part, where the new payments are lower than the SVR, but I have been refused under the “new criteria” mantra. Surely these are the scenarios the rules were made for. My clients are wasting money on interest and having to make DIY overpayments when all we need is a bit of common sense in applying our new rules. 

I cannot wait to see how lenders interpret the new pension rules as they seem incapable of understanding that compulsory retirement has been outlawed for most and not all 65-year-olds must retire and vest their pensions. 

We will soon have to return to human underwriters assessing each case on merit or the market will grind to a halt.