Research by myhomemove, the UK’s leading provider of conveyancing services, 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.
While frustration levels felt by individuals increased by over 157% at the ‘intrusive’* and in-depth questioning process now employed by lenders, 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.
Key findings:
- Feelings of frustration concerning the stricter mortgage application process increased by 157%
- Successful first time applications resulting in a mortgage offer increased by 156%
- 80% of recipients see the stricter lending criteria as a good thing for the economy and housing market.
- Number of people who put an offer in on a property without having a mortgage offer in place increased by 52%
- 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.
"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, as the number of repeat applications fell substantially and successful first-time applications soared. However, as a conveyancing provider, we believe that lenders will become quicker at processing mortgage applications as regulatory requirements bed in, as unfortunately, it is still one area of the home buying process which causes transactional delays and has suffered since the introduction of MMR."
For further information on myhomemove and the services it provides, please visit www.myhomemove.com.
*Sample answers as to why the process caused clients to feel frustrated
- "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."
- "Questions regarding spending were really hard to answer; I couldn’t remember or find all the information they wanted."
- "There were too many tricky questions which seemed too generic and didn’t look into peoples’ individual circumstances enough."
**Sample answers as to why people see MMR as a good thing for the economy and housing market
- "It means the banks are now able to provide the correct mortgage to people who can afford it."
- "Stops people getting mortgages they cannot afford."
- "I think it will stop the property market collapsing again."
