Record low rates while lending figures still come down

The latest figures released by the Bank of England show that while lenders are promoting some of their lowest ever rates as they strive to deliver their end-of-year targets, the volume of house purchase approvals during October has fallen to a level not seen since June 2013.

There has been a high volume of speculation and reasoning as to what has caused the drop, the main suspect being the aftermath of the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review (MMR), which was conducted by the Financial Conduct Authority back in April 2014. The MMR brought in tougher affordability criteria. With a more detailed income and expenditure analysis, it may have slowed down mortgage approvals, and led to more people being declined for the amount they wish to borrow.

It seems unlikely that the regulatory changes alone would have such an ongoing impact, so it may be another factor. House prices have reportedly been slowly increasing, meaning the deposits needed are greater, particularly for first-time buyers who don’t have the equity in an existing property to help support their move, and more and more are calling on parents to help them to get onto the property ladder.

Qualified mortgage professionals have still found themselves with appointments in their diaries, as people are keen to seek clear and transparent advice on the mortgage options available. When you have gained accreditation following the completion of the required CeMAP training, you will be best placed to fully comply with the regulation set out by the Financial Conduct Authority.



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