May 23, 2014

Impact of the new Mortgage Market Review (MMR) process

The new process essentially sees lenders asking applicants a series questions about their spending habits and lifestyle in order to ascertain whether they can afford to repay the property loan they are applying for. These rules incorporate stricter filters to the mortgage application process which are expected to impact on both the amount people will be able to borrow and the length of time an application may take.

The rules have been introduced to prevent the return of the pre-crisis mortgage lending which has been widely described as “reckless”. Under the new rules the lenders, rather than the borrowers, will be checked by the regulator to ensure affordability checks for mortgage repayments are being carried out properly.

House sales in the UK have increased by 24% in the first three months of 2014 compared to the same period in 2013 according to figures from HM Revenue and Customs (HMRC).

Individuals looking to find a good deal could be facing weeks of delays waiting for an appointment with lenders’ mortgage advisers.

A Business Development Manager at one of the UK’s largest lenders has warned brokers at a recent conference that customers could expect waiting times of up to four weeks before they can see a lender’s in-branch mortgage adviser.

Brokers were also told that lenders’ face-to-face meetings could take between three and three-and-a half hours to discuss all relevant information now that the new rules have come in.

At Royds, in order to advise our clients on all types of residential transactions, we ensure that this includes offering advice on the latest rules which govern the property sector. We have a wealth of knowledge in advising individuals and are always happy to run through the latest procedures and options available to them.

For more information, please visit or contact Gareth Williams.

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