In the most recent First Time Buyer Opinion Barometer, nearly a third of first-time buyers in London say they have found it more difficult to get a mortgage since the new, tighter, MMR regulations came into force. However, across the rest of the UK, only 1 in 5 found that the new procedures have impacted their application process. The majority of those surveyed (53%) think that the new MMR regulations are a positive step for the market.
David Brown, commercial director of LSL Property Services, said:
“The new regulations may mean more rigorous testing for new buyers, but they will help ensure they are better informed about such an important financial decision. And with talk of an interest rate rise ongoing, it is vital that this possibility is taken into account when considering the application of new buyers. Greater stress-testing and questioning may sometimes feel invasive, but it could prevent greater heartbreak in the long-run. The new regulations will help ensure first-time buyers are clued up as to how their personal finances will perform within a more testing economic arena.”
