Recent research has revealed that six months after its introduction, UK home buyers hold mixed feelings over the Mortgage Market Review (MMR), which was designed to halt reckless lending.
Potential borrowers were left feeling frustrated at thein-depth questioning process now employed by lenders although the vast majority of respondents felt that MMR was on the whole a ‘good thing for the economy and housing market’, as it would help to ensure a sensible approach to borrowing.
Myhomemove asked over 100 of its home moving clients to share their experiences of applying for a mortgage before and after the introduction of MMR in April 2014. Topping the list of findings was the frustration felt by post-MMR applicants at the level and depth of questions now asked by lenders.
Despite misgivings and since the introduction of MMR, however, successful first time applications resulting in a mortgage offer increased by 156% although the ease of obtaining a mortgage fell by 16%
Doug Crawford, CEO of myhomemove said, "Although people are frustrated at the level of information required by lenders, our survey shows that the majority see the stricter lending criteria as a good thing for the economy and housing market; citing it as a way of ensuring people don’t overstretch themselves, or face the horrible situation of having their home repossessed.”
Although it seems that the new MMR process can feel personal and intrusive, it does seem to suggest that it is robust and productive for many home movers, as the number of repeat applications fell substantially and successful first-time applications soared. BSG as a conveyancing provider, hopes the new system will assist with increasing the transactional process seeing less time spent waiting for a mortgage offer which can ultimately be one of the largest delays in the process.