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.“