Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
Following new mortgage rules introduced by the Financial Conduct Authority (FCA) last month, Graham Walters, partner within the banking and lending services group at TLT Solicitors, and Emily Benson, partner within the financial services regulatory team, also at TLT, discuss what the impact will be on the different parties affected.
Borrowers will have greater certainty about whether they can afford their mortgage in the event of future interest rate rises, as a result of changes to FCA rules which came into force on 26 April 2014. The changes are a result of the FCA’s mortgage
market review (MMR) and will also mean most people will now get help from an adviser before taking out a mortgage.
What is the background to the new rules?
Graham Walters (GW): In the period up to 2008, mortgage lending criteria was very relaxed with high risk lending and borrowing going on. There was concern that failure to adequately assess affordability had caused severe hardship to some individuals
in terms of the level of debts that they were carrying and for some, it resulted in repossession of their property.
The Financial Services Authority as it was back then, the FCA now, felt that a lot of poor practices had crept in to the mortgage lending market and so in 2009 they kicked off a full review of the market and after consultation with the industry final
rules were published in October 2012. Those rules were implemented on 26 April 2014.
Who will it affect?
GW: The rules apply to the residential mortgage industry rather than commercial lending. Within the residential mortgage industry I think it affects everybody—lenders, intermediaries and ultimately the borrowers.
Lenders have really had to tighten up on their underwriting processes and they have an obligation now to ensure that loans are affordable. I think that is what has driven a lot of the press comment that we
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
0330 161 1234