Mortgage offer times reduce as MMR requirements settleDecember 19, 2014
The UK’s leading mover conveyancing services provider, My Home Move, has released analysis based on its latest data set. It has an insight into market dynamics as it works closely with key players within financial services, lenders and the estate agency sector completing transactions in the 109 postcode areas in England and Wales.
The data to the end of November shows a significant change in mortgage offer times. Following the launch of the Mortgage Market Review in April this year, the average mortgage offer time had increased by almost 27% compared with the same period last year* (May and June 2013 versus May and June 2014).
However, recent data has shown that the time has been reducing steadily in the last four months to the extent that the average offer time in November 2014 was exactly the same as it was in November 2013.
There are several factors contributing to this decrease: intermediaries have a greater awareness of the lenders’ requirements; lenders have started to apply a more pragmatic approach to regulatory interpretation and consumers’ expectations are being managed so that they are more prepared and have the required documentation upfront. The market has also eased in Q4, which will have assisted with capacity and led to faster turnaround times.
Speaking of the reduction in mortgage offer times, Dev Malle, My Home Move group sales director, has said,“Despite the market slow-down in the last three months of the year, this is positive news for 2015 as it indicates that the disruption that MMR caused is largely behind us. This is particularly important considering the level of uncertainty which is being caused by the impending general election and the economic fragility that remains.”