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Nationwide announces MCD plans

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  • 22/09/2015
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Nationwide announces MCD plans
Nationwide has set out its approach to the Mortgage Credit Directive (MCD) rules, with plans to implement the requirements ahead of the deadline on 21 March 2016.

The lender could not confirm a specific date but said introduction of the rules would begin in early 2016.

Nationwide will use the updated Key Facts Illustration from day one of the rule changes and is refreshing its intermediary websites to be MCD compliant. It will also launch a communications programme about the changes.

In order to identify consumer buy-to-let customers, the lender will add further questions to its mortgage application form. Brokers have been notified that they will need to have the appropriate permissions and be fully registered with the Financial Conduct Authority (FCA) to conduct consumer buy-to-let business.

Nationwide’s plans follow announcements by Santander and Barclays on their intentions for the regulatory changes.

There will be no material changes to Nationwide’s existing lending policy, it said, adding that minimal impact on lending activity was expected.

Ian Andrew, managing director of group intermediary sales at Nationwide, explained that many of the requirements set out under the MCD had been taken care of as part of the Mortgage Market Review.

“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 [Business Development Managers] are already available for the help and support needed as the changes are implemented,” he added.

“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.”

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