Mortgages  

Santander and NatWest reveal MMR propositions

Both Santander for Intermediaries and NatWest confirmed their positions last week, with Santander announcing that its introducer internet platform would be relaunched on 7 April.

Brad Fordham, managing director of Santander for Intermediaries, said the lender’s refreshed platform would offer improved functionality, but would make no changes to the way it assessed affordability.

He said: “We will continue to assess affordability in the same way, working closely with our intermediary partners to ensure borrowers are offered the right mortgages for their needs.”

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Full mortgage applications should be submitted by close of business on Friday 4 April. Any cases not submitted to Santander for Intermediaries by this time will require a new agreement in principal or an application to be created and approved.

Meanwhile, NatWest for Intermediaries announced it would be MMR-ready by 15 April, and has confirmed it would no longer offer guarantor mortgages, mortgages with more than two applicants, and regulated buy-to-let mortgages, where the occupants were immediate family members of the mortgage holder.

Key criteria changes include the need for applicants to supply their intended retirement age and proof of income when the mortgage term exceeds this age, or details of the retirement income that will be available, in addition to proof of financial dependants in retirement.

Ian Andrew, the mutual’s managing director for intermediary sales, said Nationwide would become MMR-ready on 14 April.

He said Nationwide would request proof of the origin of a deposit when it was larger than £20,000, and would require proof to support applications regarding bonus, overtime or commission income.

Last week, it launched a dedicated web page to guide intermediaries through the changes to the mortgage application process following the MMR.

Mr Andrew added: “Any changes to Nationwide’s processes will be focused on evolution rather than revolution.

“As a result, we believe there should be a limited effect on the time it takes to submit and process a mortgage application with Nationwide.”

Adviser view

Mark Dyason, managing director of Scottish broker Edinburgh Mortgage Advice, said: “From my experience, lenders are confident that their propositions match the MMR rules, and I hope these are as robust as the lenders say they are. I hope they continue to communicate the changes to us as advisers, especially regarding new affordability rules, but I also expect a significant slowdown in the time taken to offer.”

MMR plans of 10 mortgage lenders

LenderIs mortgage proposition fully MMR compliant?
Lloyds Banking GroupYet to announce plans
Nationwide Building SocietyMMR-ready by 14 April
BarclaysExpected to announce plans late March
HSBCMMR-compliant advised sales launched 17 March. Non-advised sales to be withdrawn before April 26
SantanderMMR-proposition relaunched on 7 April
RBS GroupNatWest for Intermediaries – MMR-ready by 15 April
Coventry Building SocietyMMR-compliant on 14 April
Virgin MoneyMMR-compliant
Yorkshire Building SocietyMMR-ready by 29 March
Clydesdale BankMMR-compliant by 1 April

Source: Council of Mortgage Lenders, based on 2012 gross mortgage lending figures/Financial Adviser research