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FCA to review mortgage market six months after MMR

The FCA is to carry out a review of the mortgage market six months after the implementation of the Mortgage Market Review due to the fast moving nature of the market.

Minutes of the FCA’s September board meeting, published yesterday, show the board agreed it should review the state of the mortgage market six months on from the MMR. The MMR is due to come into force in April 2014.

A spokesman for the FCA said this is likely to be an internally commissioned report to the board, rather than a full post-implementation review.

The spokesman said: “The mortgage market is developing quite quickly at the moment. Recent figures have shown a significant rise in lending, and first-time buyers are returning to the market so we want to make sure the market is working properly for consumers.”

Figures from the Council of Mortgage Lenders published yesterday show gross mortgage lending hit £17.6bn in October – the highest monthly total in five years. Lending was up 37 per cent on the £12.9bn advanced in October 2012.

The minutes also show members of the board questioned whether the “highly automated” approaches to underwriting adopted by some lenders meant some borrowers were struggling to obtain mortgage finance.

Board members questioned whether those being turned away from lenders with automated approaches “were being serviced elsewhere”.

They also questioned whether the mortgage market is working in a competitive way, particularly regarding the use of exit fees.

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Comments

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

  1. The MMR was designed by a committee in the same way that a Camel is a Horse designed by a committee ! It may well prove to be as damaging as RDR (a dogs breakfast).

    Hers a couple of things to review for starters :

    Interest Only mortgages – is that REALLY what you wanted ?

    Mortgage Prisoners (and the treatment they get from their lenders) – As I have previously stated, a very big problem simmering below the regulator’s fairly ineffective radar (just wait an see what happens when rates go up)

  2. The MMR was a LuLab kee jerk reaction to the financial crisis, or should I say the regulatory crisis.

    Regulation is bust, not fit for purpose, a danger to consumers.

  3. Mortgage Prisoners! They have become the cash cow for the Lenders! TCF – not for the big boys!!!!

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