The Mortgage Market Review MMR was a three year review following the financial crash of 2007 into lending aiming to curtail high risk lending activity to make the financial market and banks more stable.
The practical effect is that people seeking mortgages have to undergo more rigorous credit checks which has meant large numbers of people have had mortgage applications rejected. Mortgages companies require a detailed understanding of both spending patterns as well as income when assessing applications and will require higher deposits than previously.
Rejected Mortgage Applications
An Experian report has shown that since the introduction of the MMR rules in April 2014, 45% of people who planned to buy a property have not done so.
So that buying a home has become harder. Whilst nobody wants to see home repossessions climbing we do want people to be able to buy there own home and create movement in the housing market. Experian calls for mortgage companies to give more detailed reasons to why people have been rejected for a mortgage so that they can take actions to get financially fit for another application at a later time.
The Impact on Landlords
The impact on landlords will be tenants will need to stay longer in rental accommodation whilst they save up the deposit and make the financial changes required. This is likely to lead to increase dwell times for tenants.
