Changes made to the company have been minor, as the lender claims it was well aware of the consultation and proposed changes when it launched – and set up with these proposals in mind.
One of the more prominent changes in the company’s update has been that of regulated bridging loans now having a maximum term of 12 months, with no exceptions made.
The lender will be implementing the new affordability calculations and as a result will not offer the ability for borrowers to service any regulated bridging loans, meaning interest will have to be added to the loan.
It will also assess the client’s exit strategy and where this is a refinance, it will seek evidence of their income to ensure they are able to afford the refinance mortgage.
Dragonfly will also not allow any credit repair bridging loans under the FCA definition of credit repair, i.e. if the borrower needs a bridging loan for a short period of time while they try and repair their credit file.
There is also a new Statement of High Net Worth to be signed by the borrower’s accountant prior to the issuing of any high net worth second charge.
The lender also stated that any pipeline cases that meet the criteria above have the KFI and offer letter issued prior to April 14 and complete by no later than April 30, any that do not meet the post-MMR changes will not be considered.
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