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MMR’s impact on mortgage market lessens

The Mortgage Market Reviews (MMR’s) effect on the UK’s mortgage market has reduced recently, according to the Bank of England’s (BoE’s) latest trends in lending report.

Mortgage approvals for house purchases picked up in June and then reduced slightly in August. The number of approvals for remortgaging was broadly unchanged between the same period.

Experts believe issues associated with the new regulations brought in with the MMR meant approvals fell over the summer, but they now seem to have largely dissipated. Gross mortgage lending in the third quarter of the year totalled an estimated £55.5bn, which was 8% up on the previous quarter.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said:
"Lenders who are behind target for the year as a result of the delays caused by the mortgage market review are cutting their fixed rates in order to catch up before the end of December,
"We expect this to continue as they look to develop a strong pipeline for next year."

Aaron Strutt, of mortgage broker Trinity Financial, said:
"Many of the banks and building societies are not lending as much money as they would like and they are lowering their rates to tempt in more customers.
"Back in 2009 there was real surprise when the lenders started to offer sub-2% mortgages. Many of the lenders [now] have the ability to offer even cheaper rates.
"The lenders love topping the best-buy tables and often undercut each other to make sure they are mentioned."

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