23 Nov

Red tape could be impacting on UK home buying

Red tape could be impacting on UK home buying

Changes in mortgage regulation means buyers are finding it harder to purchase property.

This is according to a new report from the Intermediary Mortgage Lenders Association (IMLA) which shows the changes have helped improve the stability of the UK property market.

However, the IMLA believe there needs to be an independent assessment of the impact of the new regulations to fully examine the impact of the changes, especially on first-time buyers.

The research found many borrowers are frustrated by how much they can borrow being limited by affordability under the new rules.

"Following the financial crisis, policymakers and regulators have rightly sought to increase the stability of the mortgage market through several different pieces of regulation. While these policies have reduced risk, they have also reduced non-standard borrowers’ ability to access the mortgage finance needed to get on the property ladder,’ said Peter Williams, executive director of the IMLA.

"While the market is still working for borrowers with large deposits and stable jobs, Britain’s growing number of non-standard borrowers face several regulatory imposed hurdles," he explained.

“While it is hugely important that market stability is supported, it is questionable whether such a tight regulatory approach is compatible with policymakers’ goal of increasing popular homeownership. It is therefore hugely important that the Financial Conduct Authority’s planned Competition Review assesses the role regulation plays in limiting consumer access to the mortgage market,” he added.ADNFCR-1222-ID-801828807-ADNFCR

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