The main change is that the majority of mortgage sales will need to be advised, while supporting documentation should be maintained.
The onus will be on lenders to approve affordability, yet they will rely on scenario planning and ‘rate shock’ tests from mortgage advisers.
John Penn, head of mortgage proposition at Intelliflo, said: “Whilst the majority of mortgage advisers are aware of the MMR and its requirements this checklist will allow them to effectively get to grips with the practical implications that it will have for them and their firms.”
Mortgage advisers will be required to provide an increasing number of audit trails and detailed documentation from client meetings in order to prove conversations and checks took place.
The MMR Checklist is split into seven sections with action points in each.
Penn added: “Most mortgage advisers believe that the MMR will be a positive for the mortgage market, however few would disagree that there will need to be a period of adjustment where lenders and mortgage advisers alike find the best ways of working within this new dynamic.
“We developed the checklist so that businesses can easily see where they stand in terms of MMR-readiness and what actions they need to take, if any, to ensure they are fully compliant and prepared come April 26.”