MMR – Ready or not?

MMR – Ready or not?

With only one month to go before the new mortgage rules come into force, the Council of Mortgage Lenders (CML) is preparing for the possibility of a rocky road ahead.

The CML recently posted that ‘the sheer scale of the changes to firms’ systems and processes may affect transition to the new rules in the short term.’

However, the Council is confident that they are prepared for the Mortgage Market Review changes, and Director General at the CML, Paul Smee, said:

‘The introduction of MMR regulation will bring the largest change to how the mortgage market works in over a decade. The industry has shown that it is ready, and we anticipate a smooth transition into the new framework. We hope and expect the new rules will provide a robust and stable framework for the long term.

‘We hope that any transition issues can be managed in a way which minimises their impact on the borrower, and the CML is ready to assist the FCA in this task.’

Reassuringly, a recent FCA survey found all firms planning to conduct mortgage business – brokers as well as lenders – will be ready to implement the new rules on the 26 April.

Some lenders, including Nationwide, Woolwich, Nottingham Building Society and Virgin Money have already announced their MMR lending criteria in advance of 26 April.

To see a list of key changes, visit the CML website at: https://www.cml.org.uk/cml/home

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