‘Transitional provisions were introduced into the MMR to minimise the number of ‘mortgage prisoners’ post-implementation.’ Mortgage Strategy.
The Financial Conduct Authority (FCA’s) Transitional Arrangements provisions, currently available through the Ipswich, Melton Mowbray and National Counties, were introduced to allow lenders to waive affordability checks for borrowers that were stuck with their current mortgage. The only requirements are that the customer cannot borrow any more money, but the amount is still affordable and their payment history is good. The arrangements can be applied to existing borrowers and borrowers from other lenders. In 3.17, the FCA state ‘These transitional arrangements will be able to be used by lenders to take on borrowers from other lenders.’
We have now added a Transitional Arrangements filter to our MortgageBrain Classic product. The new filter can be found in the Product Filters tab under Attributes. This new filter will allow you to search for select lenders that will consider applications from customers of other lenders.
Have you used the new filter yet? If so, we’d love to hear from you and how you have helped one/more of your clients remortgage. Email: firstname.lastname@example.org