Credit worthy house purchasers being rejected by Lenders

By Christine Farrell

Mortgage lenders are being accused of being "over-zealous" in their application of the Mortgage Market Review (MMR), doing a U-turn on mortgage applications that had been agreed in principle, and otherwise denying "credit-worthy buyers".

The comments came from Miles Shipside, director of Rightmove, who says the "over-zealous implementation of the MMR" has resulted in three consecutive months of declining mortgage approval levels. He spoke with particular regard to mortgage applicants who had received an initial approval in principle, only for Lenders to subsequently apply the MMR guidelines and change their mind, resulting in property purchases throughout Northern Ireland and the rest of the UK to fall through.

The Mortgage Market Review was implemented in April, and was soon referred to as a mortgage 'lifestyle quiz', and in less flattering terms was likened to the 'Spanish inquisition'. Mortgage applicants now face more detailed questions about their expenses, including how their plans, such as to have children, would impact on their expenses and their ability to keep up with their monthly mortgage payments. The aim was to factor in stress tests for mortgage applicants to cope with changes to the cost of living or a rate in interest rates.

If you are buying, selling or remortgaging a property in Northern Ireland, and require a conveyancing solicitor to handle the legal process for you, contact Wilson Nesbitt in Belfast by calling 0800 840 9290.