I welcome the comments by the Head of the National Association of Estate Agents voicing his concerns regarding the Mortgage Market Review (MMR). Readers of this blog will know that for the past 18 months I have advocated strongly for Government action and support to force lenders to increase the amount of lending to enable all prospective purchasers and first time buyers in particular to get onto the housing market. If the current proposed restrictions are applied, more than 150,000 purchases each year will not take place and this will hit first time buyers heavily. This will have a huge knock on effect. I will keep you updated in respect of these proposals.
Since writing this blog, Prime Minister, David Cameron has now spoken out against plans to clamp down even further on mortgages in the name of responsible lending. Mr Cameron had indicated that lenders have already gone too far in preventing good risk buyers from accessing mortgages.
The Housing Minister Grant Shapps, who is due to meet the FSA during the course of this week in respect of the MMR proposals, has himself indicated that he would have failed to get a mortgage under the new proposals.
I am delighted that the Prime Minister and the Coalition Government are taking this matter so seriously as the housing market is fundamental to the whole economy.
I will keep you updated.
Head of Property Services
T: 01382 229222