The much heralded mortgage market review is now upon us and the consequences of this new legislation are taking shape. Designed to “hardwire common sense” into the mortgage application process, MMR has brought stringent affordability checks combined with ‘stress’ testing to take into account future interest rate increases.
The effects so far have been mixed. We have encountered stress testing by lenders projecting interest rates up to 7% before agreeing the mortgage. Affordability checks have produced questions about food types, pets, and shopping habits. One of Lee’s colleagues was asked to clarify her client’s shoe purchase tendencies last week!
The biggest effects so far have been an increase in timescale. High Street lenders have seen their average mortgage interview time change from 45 minutes to up to 3 hours per appointment and, anecdotally, estate agents are reporting long periods of inactivity in chains while buyers wait for a mortgage appointment.
So far, we are pleased to say that all mortgages submitted by The Cotswold Mortgage Broker due to complete post MMR, have been offered without undue delay. However, it is important that buyers are fully prepared for a longer wait than usual and should allow at least 12 weeks for conveyancing. That’s not to say it can’t happen quicker, but this should be seen as a silver lining rather than the norm.
We have seen a steady increase in enquiries over the last three weeks as clients begin to appreciate the convenience of using a broker able to conduct a mortgage interview at the customer’s home outside normal working hours. This avoids the inevitable queues of High Street Lenders and is a much more comfortable experience for all concerned. The process is quicker still if all documentation requested prior to the appointment is readily available when Lee arrives.
If you are having any difficulties in securing a mortgage appointment, or like one of our newest customers, have been made to wait three weeks for an approval in principle, please call Lee on:
01242 673341 / 07900 554819
or email firstname.lastname@example.org