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rantnrave

Mmr A Year On

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Something to bring a little cheer...

Buyer numbers hit as they wait 50 days to receive mortgage offer

Two-thirds of estate agents have seen a decrease in buyers and a quarter of mortgage brokers have experienced a drop in business following the Mortgage Market Review, which was implemented a year ago.

Mark Hayward, NAEA managing director, said: “This Sunday is the anniversary of the MMR and we can now really see the substantial effects it has had on the property market.

“The new rules, which introduced stricter guidelines for lenders, has led to 65% of NAEA estate agents reporting a decrease in the number of buyers.

“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.”

Separate research by Paragon Mortgages showed that out of 200 intermediaries who took part in the survey, 25% said they had experienced a decrease in business, mostly of up to 30%.

Lenders have also reported a sluggish start to this year with lending down by 12% in the first quarter compared with the last quarter of last year, and down 3% on the first three months of last year.

However, mortgage lending did pick up in March, says the Council of Mortgage Lenders.

Confusingly, the Bank of England says that the number of mortgage approvals for house purchase rose “slightly” in the three months to February. However, approvals do not always progress to actual loans.

The Bank also reports that buy-to-let lending accounted for 15% of all residential property mortgages by the end of last year.

http://www.propertyindustryeye.com/buyers-hit-as-they-wait-50-days-to-receive-mortgage-offer/

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30% down sounds about right.

My home aeas transaction, already on the floor since 2007, have dropped about a third.

Housing transaction arerunning about 1/10 of the normal rate, last seen in 2003ish.

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Explains why properties go sstc and then return toRightmove some time later. Looks like very slow cchains and not much supply. No wonder RICS were worried. Has the market ground to a halt? There is always BTL. But they can't offload to themselves lol.

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I think the MMR has had quite a profound effect at some levels, and I have also noticed a relatively large amount of houses coming back on after 1-5 months of SSTC - seems much higher than usual, but I can't be sure. I do know that as a relatively recent self-employed, albeit earning reasonable money but only for 2 years, we were told we stood no chance for a 30-40% LTV (1.5 income) when we made semi-serious enquiries about 6 months ago.

I get why we have MMR and think its good, but I do wonder how a 30% LTV mortgage can be considered risky for the banks? And although I hate to say it (I strongly support tighter lending), the current MMR might have gone a little too far. It's hard/impossible to compete with BTL now (yes, we could have got a BTL on the house we were looking at, but decided against going down that route).

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Explains why properties go sstc and then return toRightmove some time later. Looks like very slow cchains and not much supply. No wonder RICS were worried. Has the market ground to a halt? There is always BTL. But they can't offload to themselves lol.

Most of it have around my way ,you have the top end equity rich swapping equity and the bottom end being propped up by BTL and as for they can`t offload to themselves the sad fact seems to be (in my part of the world) there's enough greater fools out there willing to buy some else turd with the intention of polishing it

Apart from the above it`s still trading at all time lows when it comes to transactions zombified is what i would call it

Edited by long time lurking

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As the MMR did not cover BTL, it has reduced buyers' competitiveness in bidding for property against BTL purchasers. The BTL crowd can buy an ever bigger portion of the market, increasing the imbalance in our property market.

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As the MMR did not cover BTL, it has reduced buyers' competitiveness in bidding for property against BTL purchasers. The BTL crowd can buy an ever bigger portion of the market, increasing the imbalance in our property market.

Yep that's what what I'm seeing. BTLers outbidding everyone stupid enough to work for a living. You can't compete with people that can get IO at a lower rate unless you have an inheritance.

I have two employees emigrating this year because they can't afford to live in a house.

21st century Britain - no country for young men.

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I do not believe that MMR brought any substantial effect on reducing number of liar loans both on mortgages and remortgages.

I know of several people that got mortgage or remortgage on liar basis.

Allegedly, they remortgaged him on the basis of his CV only.

Other person got mortgage without proof of steady (and sufficient) income. She is a hairdresser working from home (evenings only, not weekends, no receipts) and got herself £150k mortgage!

Both are in London where "equity" forever rises, but still you should provide evidence that you can pay the mortgage, right?

MMR is just a window dressing.

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