With the new Mortgage Market Review (MMR) regulations fast approaching, we're committed to working closely with you to give you the information and support you need. As applications currently with us, and those submitted in the coming weeks, may still be in our processing pipeline post MMR, below you'll find some key information on how those applications could be affected. We've also provided some 'Top Tips' to ensure the transition of your pipeline business is as smooth as possible for you and your clients.
- Nationwide will be MMR compliant and operating under MMR regulation from 14 April 2014, two weeks ahead of the official FCA implementation date. From this date we'll only accept applications from intermediaries on an advised basis.
- Any Decision in Princple (DIP) not progressed to a full mortgage application before 14 April 2014 will need to be reprocessed and reassessed under MMR regulations. If you've submitted a full mortgage application before 14 April, but the case requires a material change after this date, it will also need reassessing under MMR regulation. This means we could ask for further proofs and additional information, or we may need to reassess your client's affordability. A non-advised application submitted before 14 April may have to be resubmitted on an advised basis.
- Currently a significant proportion of applications we receive require us to reassess affordability. This is usually due to income proofs not matching the income declared by your client, or due to the discovery of undeclared outgoings, such as student loans, child care or other credit.
- We need to work closely with you to reduce this number and minimise the impact on you and your client. Below you'll find some more 'Top Tips' on how you can ensure your client's affordability is as accurate as possible before submitting their application.
Top Tips on affordability
- Ask your client to provide their income proofs up front, and ensure they match the income they've declared, before you submit their application.
- Make sure your client has disclosed all of their outgoings and they understand the potential impact on their application if their affordability needs to be reassessed after 14 April 2014.
- Remember to check the following for any further expenditure or outgoings: payslips; bank statements; credit reports (if available from your client)
- Once you have the full picture on your client's outgoings, make sure they are all entered fully and accurately in the appropriate field when keying their application.
- In case you weren't aware, here's a link to our affordability calculator, which you should always use before submitting your client's DIP.
- Please scan and attach any outstanding case requirements and submit your full mortgage applications as soon as possible. This will give us a better opportunity to progess your cases to offer before 14 April.
On your side with MMR
We've created a dedicated MMR page on our NFI website where we've posted all our latest updates, so you have all the information you need in one place.In the meantime, if there's anything else we can do to support you, please contact your local BDM or regional Sales Support team.