Skipton Intermediaries is to use European standardised information sheets (ESIS) from the start of next year as part of the new Mortgage Credit Directive rules.
The MCD comes into force on 21 March next year, with the current key facts illustration document to be phased out by 2019 and lenders will be forced to use the ESIS. The Financial Conduct Authority has told firms they can either have an ESIS in place or stagger it and use a ‘KFI+’ until 2019.
Skipton said it is committed to implementing all changes smoothly, conscious of further any changes so soon after the Mortgage Market Review, professionally and in partnership with brokers.
Kris Brewster, Skipton’s head of products, said: “We feel it’s important that we implement the new MCD rules promptly to ensure that both we and are broker partners can deliver the transition smoothly and professionally for our mortgage customers, we really empathise with our broker partners who will have to deal with yet more changes in the mortgage industry so close to the recent changes under MMR.
“That’s why we’ve opted to issue the ESIS from the start, rather than implement the KFI+ and then later down the line move on to the ESIS. Launching early will also ease transitional pipeline challenges around binding offers and cooling off periods.”
Additionally, Skipton Intermediaries has also committed to offering consumer buy-to-lets, meeting the increasing demand of customers for whom their circumstances have changed and have become accidental landlords.
“We believe consumer BTL is massively important in aiding customer mobility, particularly the need for let to buy solutions to remain on offer in the marketplace,” commented Mr Brewster.
“Brokers have enough going on in their worlds without needing the added confusion of which lenders are doing what and when, so we’re happy to be up front and honest in sharing our plans with them and our commitment to do it right first time.
“Unfortunately the new rules do mean from 1 October we will be unable to accept applicants who earn or plan to repay their mortgage from sources of any currency other than sterling. It simply isn’t cost effective for us to manage the currency risk.”
Earlier this week, Nationwide unveiled plans to implement the new Mortgage Credit Directive rules in early 2016, ahead of the March deadline. The lender will be using the updated key facts illustration from day one rather than the ESIS format, believing this change will have minimal impact on lending activity.
ruth.gillbe@ft.com
