MMR: Existing borrowers cushioned from affordability testing

Under the proposals, affordability checks will have to be carried out for all new mortgage contracts and second charge loans. However, the industry has been invited to consult on transitional arrangements, including allowing lenders to waive affordability check rules for customers with a good payment history. Affordability checks can also be waived when rate switching between products with the same lender, changes of term, change of repayment method or adding or taking away a party to the mortgage. Proposals suggest affordability rules can also be waived if a borrower moves or remo...