The Society has confirmed that implementation will begin in early 2016, ahead of the 21 March 2016 deadline, and will be using the updated Key Facts Illustration from day one rather than the European Standardised Information Sheet format.
The key intermediary websites NFI Online and TMW Online are being updated to be MCD compliant. A communications programme about the changes is also being launched.
In addition, Nationwide has issued a reminder to intermediaries intending to conduct Consumer Buy to Let business that they will need to have the appropriate permissions to do so and be fully registered with the FCA ahead of the MCD deadline. Additional questions will be added to the Nationwide mortgage application form to identify Consumer Buy to Let borrowers.
There will be no material changes to Nationwide’s existing lending policy.
Ian Andrew, Managing Director of Group Intermediary Sales at Nationwide, said:
“We believe that the introduction of the MCD regulations will have minimal impact. This is due in part to the fact that many of the measures build on the prior planning made by lenders and intermediaries as part of the last year’s Mortgage Market Review, with many MCD requirements that are needed in the UK already in place.
“Moreover, many of the additional measures involve technical changes that will not directly impact on the mortgage application process, nor on the ability of lenders to lend. Nationwide is also beginning a programme of communication with our intermediary partners and our BDMs are already available for the help and support needed as the changes are implemented.
“It is important that mortgage intermediaries familiarise themselves with their own obligations as a result of the MCD, including any additional permissions that will be required to conduct Consumer Buy to Let business. This will help to ensure a smooth transition across the board to the requirements of the new regulations."
