As a Conveyancer I have noted that mortgage approvals seem to be taking longer and many more are being refused than in the good old days before 2008. Of course increased regulation is a good idea to be sure that a borrower will be able to afford the mortgage payments for the years to come but also too much regulation may be slowing down the market so the need for constant review of the regulation is paramount.
Regulators’ determination to reform the UK mortgage market has resulted in a layering effect which threatens to stifle consumer access to credit if it goes unchecked, according to a new report. The cumulative impact of new MMR financial regulations introduced last year and the implementation of the European Union Mortgage Credit Directive, is affecting the lending recovery, says the Intermediary Mortgage Lenders Association (IMLA).The report acknowledges and accepts the need and ‘inevitable’ cost of improving the safety of the banking sector and preventing a repeat of the financial crisis but it warns that the common objective of building a ‘sustainable’ market with enough room to deliver positive outcomes for consumers is threatened by the sheer volume of new rules.
http://www.propertywire.com/news/europe/uk-mortgage-regulation-report-2015062410666.html
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