With only days before the Mortgage Market review altering the ways in which mortgages are sold Beth Rudolf, Managing Director of DC Law has warned how it is causing delays for estate agents:
“While lenders update their systems and train their staff to reflect the new MMR requirements, it’s estate agents and consumers who are experiencing delays in property transactions and this is having a knock-on effect on the rest of the property industry.
“Solicitors are already experiencing high volumes of transactions caused by the steep upturn of demand in the property market and the implementation of MMR is adding to this workload. Where mortgage offers have already been issued, any change in circumstances could create further delays while the borrower goes through the new affordability processes.
“This may cause problems for estate agents who rely on property transactions going through quickly to generate their income. There is also the added risk that the longer the home purchase takes, the more likely the chances of the seller or the buyer pulling out.
“While we wholeheartedly welcome the implementation of MMR and will always support initiatives that provide consumers with better safeguards, in the current market the hold-up is most untimely.
“Once MMR is in place, it will lead to tighter regulations and fewer property repossessions as affordability is ensured.”
