New research from IRESS has found that over two thirds of brokers (69%) now understand the changes they need to make to their business ahead the Mortgage Market Review and how it will affect the mortgage process.
69% of brokers feel prepared for MMR, yet just 1 in 3 make changes
Of the brokers polled at IRESS’ Mortgage & Protection Roadshows in October, 29% stated they have already made changes to their business and understand the effect the MMR will have when it comes into force on April 26th. A further 40% believe they understand the regulation but have yet to make changes to their business. The remaining third (32%) of brokers do not yet feel fully prepared for MMR and haven’t made changes.
Brokers anticipate the biggest impact of the MMR to their market place will be a lengthened mortgage application process with 35% now expecting lenders to take longer due to the regulatory requirements. Our latest Mortgage Efficiency Survey shows that 22% of lenders already take longer than 30 days to produce an offer on average as a result of changes made ahead of April, and many expect this to increase further next year. Additionally, one in four (25%) brokers believe an increased proportion of applications will be rejected following the MMR, with a further 29% suggesting more stringent affordability checks will decrease business volumes.
Integrity IFA – Mortgage advice in Edinburgh.
