Nationwide has outlined how it will comply with the new rules introduced by the Mortgage Credit Directive.
The society has confirmed it will use an updated KFI document, known as the KFI+, rather than the European Standardised Information Sheet.
As the MCD requires lenders to provide the customer with a binding offer and a reflection period, Nationwide will consider an offer to be binding from the date it is issued, and the customer’s acceptance of the mortgage conditions will be when the funds are withdrawn.
The reflection period will last for nine days and a customer can a customer can choose to waive this either through the lender or their solicitor.
Nationwide says it will continue to accept consumer buy-to-let cases from intermediaries signed up to the FCA’s new consumer B2L register. Additional questions on the application form will need to be answered to identify consumer B2L customers.
In April, the lender revealed it has stopped lending to new borrowers paid in a foreign currency as a result of the MCD.
The lender has launched help pages on its website detailing the changes, which will come into effect before the 26 March deadline.
Nationwide managing director of group intermediary sales Ian Andrew says: “In terms of the process, brokers should not experience a significant impact, particularly given that many of the changes needed have either been introduced at an earlier stage, such as revisions made in advance of the MMR rules, or are technical measures that have no impact on the application process or decision to lend.
“As part of the ongoing programme of communications, Nationwide and TMW will continue to offer assistance to our intermediary partners to prepare themselves ahead of the changes in regulation. This includes support through our BDMs, online and through telephone support, as well as our new Broker Chat facility, to enable as smooth a transition as possible.”