The Modified Affordability Assessment (MAA) is designed to make it easier for consumers who are already managing their mortgage commitments to switch to a more affordable deal. Originally introduced in 2019, the MAA helped borrowers who were up to date with payments but struggled to meet standard affordability requirements, despite the fact that a cheaper mortgage was available. Now, the FCA has extended its use, allowing Lenders to apply a modified assessment when a borrower switches to a new Lender, provided the new mortgage is more affordable than either their current deal or a product offered by their existing Lender.
This change is particularly significant because many customers remain on higher rates due to perceived barriers such as affordability checks, legal fees, or the complexity of switching. By enabling Lenders to use a more proportionate assessment, the FCA hopes to remove one of the main obstacles preventing borrowers from accessing better value products.
As a Mortgage Adviser, understanding the MAA’s scope is essential to supporting your clients. It’s not an automatic process, Lenders are not required to use it, but where they do, it can open up opportunities for customers to save money and manage their mortgage more effectively. Advisers should be ready to discuss these options, highlight the potential benefits, and ensure clients understand how a modified assessment differs from the standard process.
Crucially though, even when the MAA is applied, suitability and affordability considerations still apply. Advisers must therefore continue to assess the client’s circumstances and objectives carefully, ensuring that any recommendation is aligned with their best interests, is affordable and supports positive outcomes under the Consumer Duty.
