FCA to reduce affordability checks?
We always knew the Mortgage Market Review was going to have some impact on securing a mortgage. But while buyers appear unfazed by the changes, remortgagers are growing increasingly frustrated.
It would seem homebuyers and particularly first time buyers understand the lengths they must now go through in order to prove their ongoing affordability and secure a mortgage. This includes attending a two-hour meeting with lenders
However existing homeowners looking to remortgage are less inclined to go to such lengths and discuss a mortgage they already have a proven track record in paying.
There is now a belief that the FCA, AMI and CML may consider relaxing the rules for remortgages over the coming months.
Head of Property, Lynne McCaffrey, comments:
“I can completely empathise with remortgagers; after years of unblemished repayments it feels rather unfair and unnecessarily to be subjected to such thorough stress tests. Surely the proof is in the repayments!
“One of the challenges we often face with remortgaging is the misconception that it is a difficult and time consuming process. Under these new rules I fear this misconception could in fact be a reality and, as a result, see remortgage activity drop. I really hope the FCA addresses this sooner rather than later.”
Content correct at time of publication