Greater flexibility granted for mortgage affordability assessment rules

By Neasa MacErlean

The FCA has simplified the mortgage rules to allow firms greater flexibility over the need to carry out full affordability assessments. These will not be required when shortening a mortgage term. Similarly, MAAs (Modified Affordability Assessments) will not be essential if a firm offers a new contract to a customer who has a less affordable mortgage elsewhere or who could take a less affordable new product from their existing lender.