25 Oct, 2012
Mortgage Market Review - Roll on April 2014!
Most of the new rules come into force 26 April 2014.
The FSA will remove the option (in most cases) for non advised sales.
Interactive Sales must be on an advised basis....
Exemptions remain for :
High Net Worth Individuals (earning in excess of £300k pa)
Simple transactions however may not need advice - rate switches; terms of repayment changes etc provided that there is no increase in the amount to be repaid.
Responsibility for assessing affordability will pass from the Intermediary to the Lender. Lenders will be required to take into account committed and basic essential expenditure as well as verifying borrowers income.
All Mortgage arrangers / advisers must be appropriately qualified.
The IDD is being scrapped and replaced this a requirement to disclose "key messages" to the Customer.
The "trigger points" for giving KFI (Key Facts Illustration) information are also changing - to reduce information overload
Decision regarding CF31 Approved Persons delayed until Financial Conduct Authority operational.
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