You are here: Home - Mortgages - Remortgage - News -

Osborne encourages waiving of affordability checks for good-credit borrowers

Written by: Rebekah Commane
George Osborne has encouraged lenders to waive affordability assessments for mortgage prisoners where borrowers are looking to switch products without taking on more debt.

While welcoming the overall findings of the Financial Conduct Authority’s (FCA) Responsible Lending Review, the Chancellor said it was also important that consumers are not prevented from accessing finance that they can afford.

The FCA’s post-Mortgage Market Review report published this week, agreed that the majority of lenders were using transitional arrangements effectively, but that the process could be made more efficient.

In an open letter Osborne wrote: “People seek to make changes to their mortgages for a variety of reasons. In the low interest rate environment of recent years many borrowers have looked to switch products to take advantage of lower rate deals.”

“To facilitate this the FCA allows lenders to waive affordability assessment requirements where an existing customer wants to make a change to their mortgage and is not taking on additional debt.

“I am encouraged by the FCA’s finding that the majority of lenders are making use of this flexibility. I want to emphasise how important I consider this to be.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
electric cars
Are electric cars worth the money?

The popularity of electric cars is on the rise, but just how affordable are they and are they a practical option for everyday drivers?