The Leeds Building Society says it is on track for the new Europe-wide mortgage regulations which come into force in March 2016.
The new regulations under the Mortgage Credit Directive (MCD) come into force on 21 March and aim to standardise the mortgage process and consumer protection across Europe.
Martin Richardson (pictured), Leeds Building Society’s director of business development, said: “We’ve been working for some time to ensure that our computer systems are ready to meet the Directive’s requirements and our preparations are on-track so now we are well placed for when the provisions come into force.
“For the time being, we have decided to adopt an updated key facts illustration, KFI plus, rather than the European Standardised Information Sheet format (ESIS).
“The seven day reflection period has been incorporated into the mortgage offer acceptance form, which has to be returned prior to completion. The customer can waive the right of reflection and complete within the reflection period by signing and returning the offer acceptance form early.
“We have also introduced changes to the buy-to-let remortgage process, to assist brokers in identifying Consumer Buy to Let cases.”
Richardson said that pipeline applications where the signed offer acceptance form is received by 1 March 2016, or applications which have been submitted after our MCD systems implementation on 20 December, will not require any further action. Other pipeline applications will receive additional MCD disclosures closer to the regulation date.
He added: “We are encouraging brokers who want to submit Consumer Buy to Let business to apply to join the FCA register as soon as possible.”