It has been revealed by the National Association of Estate Agents (NAEA) that new, more stringent affordability checks have led to plummeting buyer figures.
The NAEA announced that just over 60% of the UK’s estate agents reported falling numbers of people looking at buying their first – or indeed subsequent property – since the increased regulation enforced in 2014.
The full review of the mortgage market (MMR) was carried out by the Financial Conduct Authority (FCA) in April last year. It led to the implementation of more detailed affordability assessments, to ensure borrowers could comfortably afford the required monthly repayments. The more stringent testing means that borrowers have to prove they can afford the repayments at the current rate, and also if the rates rose by several percent.
Compared to a year ago, it is felt that the MMR has caused the fall in homebuyers, which has added to a slightly weaker property market. NAEA’s managing director, https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpg Hayward, commented:
“We can now really see the substantial effects [MMR] has had on the property market. The new rules, which introduced stricter guidelines for lenders, has led to two thirds of NAEA estate agents reporting a decrease in the number of buyers.”
As a mortgage advisor, you will have passed an exam, having completed your CeMAP training. You can then interview customers and assess their affordability, and advise them on how much they can borrow and what it would cost.