Its new mortgage application process will serve as a guide through the new regulatory requirements implemented by the Mortgage Credit Directive (MCD).
The MCD introduces an EU-wide framework of conduct rules for mortgage firms, with the aim of insuring a consistent approach between the EU’s mortgage industries. It comes into force on 21 March 2016.
Skipton’s eMortgage portal will also ask questions in the application process that help brokers identify clients who will fall under consumer buy-to-let lending when the MCD regulations take effect.
Under the new rules, the government has set out a framework for regulating buy-to-let activity, which will apply to a firm conducting broking, advisory or lending activity with a buy-to-let consumer.
All criteria, stress rates and products for all buy-to-let business will remain the same.
The portal will also be able to provide further information on why a decision in principle has been declined. These will fall into six categories – ranging from properties or applicants not meeting lending policy to issues with credit history, affordability and meeting scorecard requirements.
The application process has been updated to avoid delays to mortgage applications, which Skipton says will have a positive impact on its underwriting process.
In January, Skipton announced it had set up a programme to provide more help for brokers. It will also commence a road show throughout the country starting Monday 23 November to explain to brokers what impact the MCD-directed changes will have.