Bridgers request more clarification on MMR

Those in the bridging industry which took part in the survey said they wanted more information on the term extension rules which will come into effect from April next year.

Speaking at yesterday’s astl conference Lorna O’Brien, mortgage policy adviser at the Financial Conduct Authority, said: “The feedback we have from the MMR survey is that bridging firms want to know about the term extension rules and how they will work in practice.”

The survey also revealed that non-banks and niche lenders were lagging behind their mainstream counterparts when it came to their preparations for more robust affordability assessments.

Last month Linda Woodall director of mortgages and consumer lending, said: “Non-banks and niche lenders have asked for extra help to interpret the rules and for more guidance around the new prudential requirements.”

The regulator plans to make more information about this to firms this month.

The FCA plans to carry out surgeries with firms next year in the months preceding the implementation date.

O’Brien reassured firms that were still struggling with the rules and their preparations that there was still time to act.

She said: “It’s not too late to put a plan in place.”