Outlining the West Midlands-based mutual’s new lending criteria, its director of operations said the lack of a non-advised proposition and key system changes meant it had been prepared for the majority of the MMR’s new rules for more than two years.
He said: “Early adoption of the new requirements under MMR made perfect sense as we were already making substantial improvements to our sales and processing capabilities.
“Final policy changes being delivered over recent weeks will ensure full compliance for new mortgage sales and contract variations for existing customers.”
Under the new rules the building society will review the income and expenditure of applicants against key factors, such as household composition, loan amount and the characteristics of the mortgage product, with estimated expenditure compared to corresponding data from the Office for National Statistics.
Elsewhere, Barclays has told intermediaries that all loans processed from 31 March will be assessed against the new MMR rules. However, pipeline cases started before this date but submitted before 26 April will be assessed under pre-MMR rules.
Andy Wilson, director of Lincolnshire-based Andy Wilson Financial Services, said: “I think there will be big issues next month despite what lenders may say. I’m already experiencing delays on high-LTV applications and those with less than perfect credit scores will also face obstacles. The increased workload will also slow the whole process down.”