Over-zealous affordability checks by lenders are just “teething problems” and not evidence of unintended consequences of the mortgage market review, according to the FCA.
Since the introduction of the MMR in April, brokers have complained that lenders have gone too far with their affordability checks, with some scrutinising spending on items such as pet food and dinner parties.
Speaking at the FCA’s annual public meeting in London yesterday, FCA chief executive Martin Wheatley said: “I know that while a lot of firms did get all their systems and processes in line ahead of the MMR, I have heard all the stories of those that are not getting it right and are being too granular.
“And typically when we hear that we go back and have a discussion with the firm. It is still relatively early days for the MMR and those issues are being ironed out.
“To say these are unintended consequences is probably too strong – I think we are just seeing some teething problems.”