Lenders “taking forever” to look at mortgage cases, big delays and no flexibility are just some of the issues faced by brokers following the introduction of the Mortgage Market Review (MMR).
A survey carried out amongst 251 brokers and advisers over the last month found 85 per cent felt it had become harder to get mortgage cases accepted since the MMR’s launch on April 26.
Others said that lenders’ staff were unfamiliar with the new rules and were no longer underwriting but just following procedure.
Seventy-eight per cent of respondents thought lenders’ affordability rules differed either slightly or significantly. One said that “affordability seems to be a haphazard practice with different lenders having completely different rules”.
For two-thirds of advisers it was now taking more than an hour to conduct an initial mortgage interview, compared to one-third previously. Some said the initial interview now took up to three hours.
Most advisers (85 per cent) said that the new rules had had an impact on their ability to write new business, and for 25 per cent the impact was substantial.
Advisers also felt they were not well informed, with 57 per cent saying that lenders did not provide them with enough information on regulation and best practice.
The survey was carried out by mortgage best practice site TCFinfo.co.uk, Mortgage Brain and the lender consultancy BEP Financial Systems.
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