The much publicised Mortgage Market Review (MMR) came into effect on 26th April and has caused many lenders to reassess the way in which they provide mortgages.
The new regulations imposed by the Financial Conduct Authority, have set out a robust affordability criteria to ensure that people do not borrow more than they can afford.
As mortgage lenders and financial advisor’s strive to come to terms with the new regulations, some delays are being seen in the mortgage application process and for borrowers with complicated income sources or the self-employed, these customers could find themselves having difficulty with some of the systems being adopted. This is not so at Beverley Building Society.
In many institutions, affordability is automatically assessed based on the income and expenditure provided from national statistics or by computer systems that make the decision on whether to lend.
“At the Beverley we have a team of professionally qualified mortgage personnel that manually underwrite and assess the financial situation of all applicants. In other words, we do not use computers to make decisions for us; we assess each individual case on its own merit.
At the Beverley our focus is on responsible lending and we maintain a ‘common-sense’ approach when assessing affordability.”