Six months after the introduction of the Mortgage Market Review (MMR), UK home buyers hold mixed feelings over it, according to research by conveyancing services firm myhomemove.
Frustration levels felt by individuals increased by over 157 per cent at the ‘intrusive’ and in-depth questioning process now employed by lenders. Comments included:
- “The bank kept asking for the same information regarding what I spent my wages on over and over again.”
- “It was awkward and intrusive. I felt that they needed to know too much information that wouldn’t help or support my application.”
However, the vast majority of respondents felt that MMR was a ‘good thing for the economy and housing market’, as it would help to ensure a sensible approach to borrowing.
The study found successful first time applications resulting in a mortgage offer increased by 156 per cent after MMR, while the number of people who put an offer in on a property without having a mortgage offer in place increased by 52 per cent. It also found ease of obtaining a mortgage fell by 16 per cent since the review’s introduction in April.
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.”
“While we appreciate that answering reams of questions can feel personal and intrusive, it does seem to suggest that the new MMR process is robust and productive for many home movers.”
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