Society Reveals MMR Proposition

22 April 2014

The Society has confirmed its position with regard to the new Mortgage Market Review (MMR) rules and has revealed the additional questions it will ask of brokers when submitting their client’s application.

The Society has already begun assessing all mortgage applications under the new MMR affordability rules and, as part of its commitment to the process it has introduced a new online mortgage calculator to help intermediaries work out the maximum mortgage available to their clients.

Whilst the Society will continue to cap its lending by income multiples and to apply the same prudent lending criteria it always has, new affordability questions include:

  • Where the client has dependent children, the Society will ask for confirmation of childcare costs
  • Clients will be asked to detail the household composition of the mortgaged property
  • Clients will be asked to detail any significant travel expenses such as rail season tickets
Previous affordability criteria that will remain in place includes:

  • New clients will be asked to provide 3 payslips along with a P60 and 3 previous bank statements
  • For all house purchase loans, new clients will have to provide proof of savings
  • Self-employed clients will need to provide the last 2 year’s trading accounts or an SA302 form. Confirmation of the figures provided will be obtained from the client’s accountant
Colin Strong, Head of Lending Procurement, commented: “Having already implemented the new questions into our application process, I am confident that there will be no significant impact on the process time needed for mortgage applications with the Society.”

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