Nationwide will continue to issue a KFI document and will include the additional MCD disclosures in the relevant sections, rather than use the European Standardised Information Sheet.
The MCD requires lenders to provide the customer with a binding offer and a reflection period. Nationwide will consider an offer to be binding from the date it's issued and the customer’s acceptance to the Mortgage Conditions will be from when the funds are drawn down.
Its reflection period will last for 9 days (allowing for 2 days postage), beginning from the date the Offer is produced. A customer can choose to waive the reflection period by contacting Nationwide or, where appropriate, by their solicitor returning the Certificate of Title.
Nationwide’s Lending Policy doesn't currently support foreign currency lending to new borrowers and the society confirmed that it would not be making any changes to its lending policy.
Nationwide has now launched a dedicated EU MCD page on its website which details how it will be implementing the new regulation and its approach to applications in the pipeline.
Ian Andrew, managing director of group intermediary sales at Nationwide, said:
“We are outlining our approach to the changes needed ahead of the introduction of the MCD regulations to support intermediaries in their planning and preparation for the new rules.
“In terms of the process, brokers should not experience a significant impact, particularly given that many of the changes needed have either been introduced at an earlier stage, such as revisions made in advance of the MMR rules, or are technical measures that have no impact on the application process or decision to lend.
“As part of the ongoing programme of communications, Nationwide and TMW will continue to offer assistance to our intermediary partners to prepare themselves ahead of the changes in regulation.
“This includes support through our BDMs, online and through telephone support, as well as our new Broker Chat facility, to enable as smooth a transition as possible.”
