Mortgage lenders have come under increasing pressure from the Financial Conduct Authority and the Financial Ombudsman to approve lending that has initially been refused, in certain circumstances.

When existing borrowers apply to move house but do not wish to change their current borrowing levels – or in some cases, even want to reduce it – many are currently being declined, as they do not meet the new tougher affordability criteria that were enforced earlier in the year.

The Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review that was carried out in April has seen a number of people being refused requests to ‘port’ or transfer their mortgage product, and the amount outstanding, when they move house. In many cases, they are becoming a safer risk to the lender as they are reducing their debt, and yet lenders are closing the door with a ‘computer says no’ attitude.

When you have completed your CeMAP training and passed the end exam, you will be the first point of contact for many customers looking to move. It is your job to explain that porting involves undertaking a new credit score and completing a fresh application for the new property.

This is where many have hit a stumbling block, and the Financial Ombudsman has seen a rise in the number of people complaining. As a result, the ombudsman has sent a clear message to the mortgage industry that it needs to look at helping borrowers who want to reduce their outgoings by downsizing, therefore reducing the risk they pose.

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