MMR fails to slow down lending

September 2, 2014 by Brendan

Lenders

Despite the tougher checks introduced through the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review (MMR), data shows that lending has slowly continued to increase, with first-time buyers reportedly at a record high.

Earlier this year, the Financial Conduct Authority carried out the review that saw new stringent checks for lenders to adhere to. The move came in a bid to prevent a return to irresponsible lending, where people end up in negative equity and unable to maintain their repayments.

Now, the Council of Mortgage Lenders (CML) – which represent 90% of those based in the UK – has said that June’s lending figure was six per cent higher than the 2013 equivalent, and 15% more home loans were taken out.

Despite the recent financial crisis, first-time buyers have reportedly seen approvals at the highest level since 2007.

The Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review, together with the new rules implemented by the Financial Conduct Authority, means that lenders now have to delve more deeply into borrowers’ spending habits.

Paul Smee, who is the director general of the CML, said:

“As we recently suggested in our revised forecasts, lending levels should continue to increase modestly over the course of the year, driven mostly by house purchase but with remortgaging also recovering.”

In view of the changes that have occurred in the mortgage market over the first half of the year, people are more aware and keen to ensure that they receive the best and most suitable advice when deciding on a package. Professionals that have undertaken and completed the relevant CeMAP training are in demand, and the avenue chosen by most prospective borrowers.