Agents contradict mortgage brokers on effect of MMR...

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24 April 2015

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Agents contradict mortgage brokers on effect of MMR

Two thirds of estate agents report decrease in buyers following the Mortgage Market Review, says the National Association of Estate Agents.

Mark Hayward, the association’s managing director, says this weekend marks the first anniversary of MMR and he claims it has had “substantial effects” on the market.

“A drop in the number of buyers is the direct result of a slow-down in acceptance of mortgages, with it now taking an average of 50 days to receive a mortgage offer. This increases the risk that sales won’t go through and puts unnecessary pressure on any chain transactions” he says.

The NAEA view contrasts with that expressed earlier this week by Paragon Mortgages, which surveyed 200 mortgage intermediaries.

Some 43 per cent said that in their view there had been no change to their business volumes as a result of MMR and indeed some 24 per cent said that business had increased. Only a quarter of those surveyed said they had experienced a decrease.

The majority of intermediaries who said they had experienced a decrease reported this had been up to 30 per cent; only 14 per cent said the decrease in business had been higher.