SLOW DOWN YOU’RE GOING TOO FAST!
There had been concerns about the property market overheating. There was clear evidence that this was the case with a substantial number of increased mortgage transactions and a worrying movement in prices.
The introduction of the Mortgage Market Review has had a significant effect. People who thought they could easily get a mortgage have had a rude awakening; either not being able to get a mortgage at all or finding that they cannot borrow anywhere near the amount they imagined. Many people feel they have been interrogated rather than interviewed and are staggered about the waiting time just to get an interview let alone a mortgage application submitted.
In simple terms the mortgage lenders do not have enough trained personnel to deal with the demand and neither are there enough surveyors available to facilitate the process. It is no surprise then that June was reported as the lowest number of mortgage transactions for a year and whilst July is clearing some of the backlog there is an anticipated quiet period for completions around August with holiday activity well under way.
On a brighter note interest rates remain unchanged for now and there is still a healthy appetite for purchasing. That should see out this year in some style and with prices levelling out as a consequence of this issue it should mean a healthy and affordable start to the forthcoming year.