Brokers thought it was more difficult for certain customer groups to get a mortgage between July and September, research from Paragon Mortgages shows.
The specialist buy-to-let lender’s quarterly survey of brokers’ views on the mortgage market revealed three customer groups they believe have been adversely impacted by the Mortgage Market Review (MMR).
These groups were: people borrowing into retirement; people wanting interest only mortgages; and people with irregular incomes (such as the self-employed).
During the third quarter of this year (Q3) the average number of mortgages introduced by brokers was 22, a 3 per cent drop on the second quarter but 12 per cent up on the same time last year.
Intermediaries appeared more positive about the buy-to-let market in Q3, with nearly a quarter of all mortgages introduced being buy-to-let mortgages, slightly up on Q2. In particular, 43 per cent thought the availability of buy-to-let finance had improved since Q2, up from 36 per cent.
John Heron, managing director of Paragon Mortgages, says: “The market has seen significant structural changes following the Mortgage Market Review. This is a result of both the regulations themselves and the way the lending industry has responded to them. This could be one factor behind the softer levels of business that intermediaries are reporting in the third quarter.”
