Your last chance to speak up on MMR
Posted on January 11th 2010
The Mortgage Market Review (MMR) is coming towards the end of its consultation period so if you want to have your say you need to submit your response to the FSA by the 30th January. Some of the discussion points that affect the distribution and sale of mortgages are the significant changes to fast track and self cert mortgages which effectively ban these type of mortgages.
Also, if passed in its current format lenders will become responsible for ensuring that mortgages are affordable for the borrower, which inevitably will mean that lenders will have to do a lot more work to ensure that they are complying with this regulation. Certain charges linked with the sale of mortgages will come under more scrutiny, specifically where some of these charges are considered to be excessive or unfair; this captures both ERCs and arrangement fees.
In relation to arrangement fees, there are specific questions about whether these fees should be allowed to be added to loans or whether they should be paid up front, which the FSA is keen to get views on the potential impact such a move may have. Limits to amounts a borrower will be allowed to withdraw equity from their home are also proposed and may be an area of specific interest to mortgage distributors and advisers. The key thing is that if you want to have your say you need to submit a response to the questions that affect you. The consultation paper can be downloaded here.
