The changes outlined in the FCA’s Mortgage Market Review come into being on 26^th April. This newsletter will act as a reminder to firms of the changes. You should ensure that the updated processes and documents are now implemented. 

A brief high level overview of the changes is set out below. Please refer to previous ATEB news articles for more details.

For Intermediaries:

• The non-advised sales process has been removed;
• If there is any interaction between a firm and client then advice must be given, with only very few exceptions;
• Execution only sales can only be carried out for high net worth and professional clients or where the lending is for business purposes;
• The requirement for intermediaries to assess affordability has been removed;
• The compulsory requirement to issue an IDD has been removed from the rules;
• The firm must issue the client with key messages about the firm’s service;
• Key trigger points when a firm has to issue a key facts illustration have been implemented:

For Lenders:

• It is the lenders responsibility to assess affordability;
• Lenders have to verify declared income;
• Interest-only loans can still be granted, but only where there is a credible repayment strategy.