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Brokers warn applications to take three times longer post-MMR

Brokers are warning applications could take up to three times longer following the implementation of the mortgage market review. 

The onset of the new rules has seen borrowers asked increasingly “forensic” and sometime absurd questions about their income and expenditure.

Brokers are concerned that with each case taking longer to submit, the MMR could create a backlog of business.

Neil Soundy Financial Services managing director Neil Soundy says: “It is absolutely unbelievable how much extra time the applications are taking. Each case is taking up to three times longer than normal. I am currently working on a case where one section alone has taken me about two hours.

“If the MMR is going to push a great deal more work towards brokers, we need to consider what happens when the workload is eventually backing up. Are delays an intended consequence of the MMR?”

Trinity Financial product and communications director Aaron Strutt says: “I don’t think one of the intended consequences of MMR was to create a delay in applications but with this level of questioning, it will obviously take a lot longer to put the relevant information together.

“If they tighten up the market too much with these questions and everything slows down too drastically, we may find that the regulator looks into the requirements again a few months down the line.“

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Inevitably there will be ‘growing pains’ until the banks get their acts together and brokers as well – I think things will settle but waiting on the phone for 40 minutes is not conducive to running a profitable business.
    I also have to question what the mortgage managers are managing when we see such a severe drop in service levels – managers by name only perhaps!

  2. Andy Wilson, Lincoln 28th April 2014 at 10:57 am

    I warned of lengthy delays some weeks ago at a time when some brokers were claiming the MMR would not adversely impact upon them. Some lenders remain super fast (e.g. Nationwide) but others are already suffering backlogs.

    We have to manage clients expectations over this and tell them it could take significantly longer for them to obtain the offer they need. Speed of processing is likely to move up the list of reasons for recommending a particular lender too.

  3. Santander are a total disaster. I would really advise brokers to stear clear.

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