A growing number of borrowers have found themselves trapped with their existing lender following an increased affordability focus, but could soon be released by one or two mutual societies that have extended a hand of help.
Following the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review in April 2014, lenders have tightened their criteria to meet the increased regulation and show their commitment to rulings. However, many lenders have extended this to declining existing borrowers’ requests to move or change products even though their amount borrowed is not changing and neither have their personal circumstances. This has left many of them stranded on higher variable rates when their current deal came to an end.
The rules set by the Financial Conduct Authority (FCA) state that the rules can be waived where borrower is not increasing the size of the loan, but brokers say that it is not being applied. Both the Ipswich and Melton Mowbray building society have extended their offers to those who have been left in this situation, and are advising that now is the time to take advantage of the transitional period.
The FCA has said that the implementation of the EU Mortgage Credit Directive, which will come into force in March next year, will remove this transitional allowance, meaning that more borrowers could become trapped with their current lender.
As a mortgage advisor, you will have had to undertake your CeMAP training and passed the final exam, in order to meet with customers and assess their affordability. They can then be advised on how much can be borrowed and the most suitable mortgage product to meet their needs.