Lenders have warned that the need to retrain staff in the run-up to the Mortgage Market Review could result in application processing delays.
Most non-advised sales will be banned under the MMR, unless a borrower wants to make a small contract variation or take out a retention product.
All in-branch mortgage sales will have to be advised, so lenders will need to train their staff to CeMap level or put all their business through brokers.
In the latest Bank of England credit conditions survey, lenders warned that their ability to process cases may be hampered by the need to retrain their staff.
The survey says: “Some lenders noted there was a need to retrain some staff ahead of the implementation of the MMR in April 2014 and that might constrain their ability to process mortgage applications in the near term.”
London & Country associate director of communications David Hollingworth says: “This is an understandable consequence of the new regulations. It is just one of the challenges for lenders but they’re going to have to communicate that carefully with their broker partners.”
The survey also found that in the three months to September, lenders saw a significant increase in the availability of secured credit. They expect little change in the fourth quarter.
The demand for secured lending for house purchases is expected to increase slightly in the next three months. Lenders put this down to cheaper mortgage rates resulting from the Funding for Lending Scheme.