MMR rules take effect from 26 April and represent a fundamental change in how the mortgage industry is regulated. Lenders will be required to act responsibly and make affordability a key consideration in any decision to offer mortgage funds.
The Society ceased non-advised mortgage sales some time ago. In addition, key systems changes have been completed which comply with new affordability requirements designed to ensure borrowers can manage repayments for the mortgage they wish to purchase.
Paul Field, the West Brom’s director of operations, said:
“We have been preparing for MMR for nearly two years now, while also running a major project to upgrade our application processing systems and boost residential lending volumes.
“Early adoption of the new requirements under MMR therefore made perfect sense as we were already making substantial improvements to our sales and processing capabilities.
“As a result we have been operating in an environment that reflects the fundamental principles of MMR for at least 12 months, with final policy changes being delivered over recent weeks that ensure full compliance for both new mortgage sales and contract variations for existing customers.
“As a leading regional building society we want to provide the best service to our members and therefore broadly welcome the review and subsequent changes to lending practices. Any relevant improvements that offer borrowers additional peace of mind and security that they are making the right choice have to be a good thing.”
