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Nearly 1 in 10 firms to leave the mortgage market ahead of MMR

Nearly one in 10 mortgage advice firms plan to exit the market before the mortgage market review comes into force, according to the FCA.

Publishing its latest MMR readiness survey, the FCA says at least 293 firms which hold mortgage permissions plan to exit the sector ahead of 26 April. 

The FCA says the vast majority of these firms have written less than 100 mortgages in the past year. The figure could be higher as not all of the firms that were contacted returned the survey.

The figures show 85 per cent of brokers and 86 per cent of lenders say they are ready for the new rules.

In total, 5,600 firms were contacted. Some 3,660 brokerages and 172 lenders completed the survey, compared with 3,486 and 177 in May, respectively.

Lenders have caught up since May last year, when 48 per cent said they were behind in their planning. Then, 25 per cent of brokers said they were behind in MMR implementation.

A further 6 per cent of firms said they did not have plans in place for implementation but are confident they will be ready in time.

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