In a broker note outlining its approach to the regulatory changes, Accord said that customers who receive all income in a non-sterling currency or who indicate repayment of credit will be dependent on the sale of a foreign asset or investment would no longer be eligible for a mortgage.
However, it noted that if customers were not wholly reliant on foreign income, assets or investments to repay their mortgage, then the application could proceed to the affordability stage, but with these elements removed from the affordability calculations and repayment strategies.
Accord said it would not be offering mortgages to applicants who fall into the newly created consumer buy-to-let category.
From mid-January next year, Accord will begin to provide MCD-compliant mortgage offers, while also introducing the Key Facts Illustration+ (KFI+) document. This will be replaced by the European Standardised Information Sheet (ESIS) later in 2016.
For its pipeline business, the lender will send out an offer acceptance form to accompany the offer pack sent out to customers from 1 October to January next year. Applicants will be asked to sign and return these forms as evidence they have accepted a non-MCD compliant offer.