Dip in Mortgage Approvals
Published / Last Updated on 29/06/2014
Dip in Mortgage Approvals.
The Mortgage Market Review (MMR) changes are starting to have an effect on the housing market with mortgage approvals dipping to their lowest level since January.
The peak of mortgage approvals in January sat at 75,901 and has since declined. The Bank of England (BoE) said that mortgage approvals in May dropped to 61,707.
The new MMR introduced a new set of rules which made getting a mortgage more restrictive with tougher affordability checks needing to be made.
The new rules have received a number of criticisms with the major one being that it is seriously slowing down mortgage applications even for those who are successful.
New MMR checks ensure that applicants can afford the mortgage payments even in the event of an interest rate increase. They check applicants lifestyle and what their spending needs are.