View more on these topics

Lenders expect approval rate to dip ‘significantly’ over the next three months

Lenders expect the proportion of mortgages approved to fall “significantly” in the third quarter, according to the latest Bank of England credit conditions survey.

The survey says: “Some lenders noted that changes introduced as a result of the MMR might reduce app-roval rates somewhat. In addition, some lenders suggested a tightening in lending standards on large loans with high LTI ratios may also push down their approval rate a little.”

Lloyds Banking Group and Royal Bank of Scotland have already capped LTIs at four times income for loans over £500,000.

Mortgage Advice Bureau head of lending Brian Murphy says: “There is a common consensus that mortgage approval rates are firmly in check as a result of the MMR and we must ensure activity is not dialled down so far that credit worthy borrowers are disadvantaged again.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm