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80% Say market review won’t meet FSA’s aims

Eighty per cent of mortgage brokers believe the mortgage market review will not meet the FSA’s aims to have a market that is sustainable and flexible and works better for consumers.

In an interactive session run by Platform at the Mortgage Expo at London Olympia last week, only 3 per cent of brokers said the MMR would meet these aims while 17 per cent were unsure if it would or not.

When asked what areas of the MMR lenders should be lobbying the FSA on, 39 per cent said the ban on self-cert should be the main priority while 23 per cent said expenditure verification.

Nineteen per cent said alignment with retail distribution review advice categories should be a priority for lenders.

The majority of brokers thought their share of the intermediary mortgage market would stay the same or increase in 2010, with 34 per cent saying it would increase by up to 10 per cent.

The biggest threat to the intermediary channel was seen as restricted criteria and products by 54 per cent. Dual pricing was the second-biggest threat at 22 per cent followed by tighter regulations with 16 per cent of the audience’s vote.

Loan to value ratios came top of the list as the area of lending policy where lenders are most restrictive, with a score of 76 per cent, while affordability received 14 per cent.

Accessibility to a decision- maker was felt to be the most important element of a lender’s service with 52 per cent. In second place was accuracy and speed of initial decision with 32 per cent.

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