In the months leading up to the implementation of the Mortgage Market Review (MMR), it was commonly known that the new rules would initially dampen the growth of the mortgage market. This was largely due to the immense time and investment required to update crucial business processes systems in line with the new regulations. . However, our view at Springtide Capital has always remained optimistic. We never expected MMR to have a lasting negative effect on the increased appetite for lending that has been recorded over recent months. We also didn’t expect these changes to hinder overall market growth for 2014. Encouragingly, and following recent positive conversations with a number of building societies and several major high street lenders we think we might be right.
Record mortgage growth predicted for 2014
In spite of the regulatory changes brought in by the MMR, we predict that the mortgage market will be worth approximately £220bn GBP by the end of this year. This is a large increase on last year’s £175bn, as reported by the Council of Mortgage Lenders (CML) at the end of the fourth quarter of 2013.
Mortgage lending surge to start in third quarter
Lenders have indicated that their desire for lending remains strong. MMR preparation brought with it the additional strain on internal resources, new IT systems and processes.
However, we believe that by the end of summer, these teething problems will be finalised and the situation will improve dramatically, with the biggest surge in mortgage lending looking likely to begin from the start of the third quarter and into the New Year.
If you are concerned about how the MMR could affect your mortgage application call us today on 020 3040 4400 to speak to an expert mortgage adviser.