Mortgage brokers have applauded housing minister Grant Shapps’ public criticism of the mortgage market review.
Speaking at the National House-building Council’s annual lunch yesterday, Shapps (pictured) said the MMR is a “step too far”.
He said: “I think it was at the moment that I realised I wouldn’t have a mortgage if the MMR changes went through that I thought this might be going a step too far. There is no point in closing the door after the horse has bolted.”
He added: “I hope the FSA will be getting that message. They are independent and are of course free to go off and do this work but I think it is important we learn from the lessons of the past without repeating them which is what I think they are in danger of doing.”
John Charcol senior technical manager Ray Boulger says the announcement is encouraging.
He says: “That is good news. It is always good news to have something which you expected confirmed by the right person. The signs are certainly encouraging.”
Emba group sales and marketing director Mike Fitzgerald says it is what brokers wanted to hear.
He says: “I think it is all the broker community wanted. Everybody knows the Government are looking at it and are worried about the damaging social aspects of MMR and denying millions of people mortgages. I think MPs will now take account of this wider picture. We’ve got a lot of hard times ahead, but this is a bit of good news.”
Simplicity Financial Services principal Rob Downham says: “It is interesting because over the past few weeks it looks as thought the tide has been turning against the FSA a little bit. Maybe people are now starting to see what all of us in the industry have known for the last two years.”