Removing BoE Affordability Will Increase Lender Direct Business – Star Letter 12/17/2021


Every week, Mortgage Solutions and its sister title Specialist Lending Solutions pick the best reviews from our readers.

This week’s comment comes from Bart, in response to news that the Bank of England will hold a consultation on its accessibility test next year. This decision has been widely welcomed by professional bodies such as AMI, IMLA and BSA.

Bart said: “This doesn’t sound like the best news for the middleman industry. Removing affordability testing will certainly help buyers, but more importantly, lenders will be able to do more direct business. Surprised, AMI did not object to the idea.

Sox added, “The problem isn’t really with mortgages; it is the unregulated, unsecured debt that puts people in trouble. Credit cards and loans are provided in most cases without even needing to provide a payslip. As a responsible advisor, I never let people stretch out and talk in detail about the budget and “other” costs.

“A lot of people approach me with vast levels of unsecured debt of up to £ 30,000 or even £ 50,000 which they have been allowed to take without any control, it seems, just on the basis of because they have a good credit rating. The impact of sustaining those debts, even with zero percent financing, is what takes clients out of affordability. The FCA would be in a better position to look at that and the game. “

The second comment came after the announcement that the Royal Institution of Chartered Surveyors (RICS) would not remove its guidelines for low-rise buildings to be subject to EWS1 checks.

SS said, “To expect the RICS, or any other industry body, to take responsibility for dropping safety guidelines based on government advice was always fancy in the first place. Will the Housing Department protect them and others in the chain from legal action if a fatal fire does occur and or these properties become non-mortgage in the future due to the risk of fire?

“The government has the power of primary legislation to make the necessary changes, it should get on with it instead of making unnecessary biannual public relations announcements of the end of the coatings crisis.”


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