At an event in Manchester, one audience member described the task of dealing with a mix of lenders which had started using the new rules for second charges and those which hadn’t as ‘a nightmare’.
Mortgage technical specialist for the FCA Keith Hale, agreed that the flexibility over going live would place more pressure on brokers.
“Firms aren’t obliged to all go live on the same date so you as brokers will be faced with lenders who have chosen to go at different times. Sometimes you’ll be giving out CCA advanced copy agreements sometimes you will have a consideration period sometimes a reflection period. You’re going to be busy.”
The MCD does not allow for a period of transition for pipeline mortgages and secured loans. Any applications which lenders have in their systems will need to be resubmitted under Europe’s rules if they have not completed before the deadline of 21 March 2016.
To help lenders manage their pipeline business they can choose to apply the rules ahead of 21 March 2016 to allow the changeover to take place without case resubmission, leaving brokers to juggle old and new regulations simultaneously.
Robert Sinclair, chief executive of the Association of Mortgage Intermediaries (AMI) and the Association of Finance Brokers (AFB), said the AFB was currently in discussions with second charge lenders to find out if there is a way of minimising disruption to the market and consumers.
