Coming into effect on April 26th, the main change under the MMR is that the majority of mortgage sales will need to be advised, with supporting documentation kept to demonstrate that. Although the onus is ultimately on lenders to approve affordability, they will be increasingly leaning on the experience of mortgage advisers to carry out detailed scenario planning and ‘rate shock’ tests to illustrate that a customer is suitable for a specific product.
From the perspective of mortgage advisers in the post MMR world, they will be required to provide an increasing number of audit trails and detailed documentation from client meetings in order to prove that these conversations and checks took place.
Split into seven sections with action points in each, Intelliflo’s MMR Checklist is available to download free and provides a practical guide for mortgage advisers currently preparing for the new regulatory requirements. It highlights the key areas that firms should be looking at in the run up to the MMR, as well as the questions to ask to avoid running into trouble further down the line.
John Penn, Head of Mortgage Proposition, Intelliflo says:
“This is a hugely useful resource for any mortgage adviser currently preparing their firm for the new regulations coming in under the MMR. Whilst the majority of mortgage advisers are aware of the MMR and its requirements this checklist will allow them to effectively get to grips with the practical implications that it will have for them and their firms.”
Penn continues:
“Most mortgage advisers believe that the MMR will be a positive for the mortgage market, however few would disagree that there will need to be a period of adjustment where lenders and mortgage advisers alike find the best ways of working within this new dynamic. We developed the checklist so that businesses can easily see where they stand in terms of MMR-readiness and what actions they need to take, if any, to ensure they are fully compliant and prepared come April 26th.”
