One of the consequences of the introduction of new MMR requirements is that brokers have placed more focus on getting applications packaged right first time, according to new research carried out jointly by SimplyBiz Mortgages and NatWest Intermediary Solutions.
It also found that there was much optimism around the buy-to-let market, home mover mortgages and remortgaging. The research was carried out amongst a sample of SimplyBiz Mortgages members.
The survey found that 80% of brokers’ customers were aware of the changes to the affordability assessment and that 71% said that they were now more focused on the packaging quality of applications.
Looking at market conditions there was an optimistic outlook about a number of sectors. 37% expected to do more buy-to-let business this year than last with 55% having seen an increased demand for mortgages from second and third time movers. Remortgaging is on the up with 40% saying they had seen an increase in this type of business compared to six months ago.
For first-time buyers, there was an equal split in opinion on what was the most appealing type of incentive a lender could offer with 40% opting for free legal and valuation fees and another 40% picking Stamp Duty costs paid. 8% said a cashback deal was preferred with 2% suggesting the lowest rate of interest possible.
Graham Felstead, head of NatWest Intermediary Solutions, said: “Whilst the introduction of the new MMR requirements was a major milestone for the industry, it is great to see that SimplyBiz Mortgages members have embraced the changes communicating them clearly to their customers and making greater efforts to submit correctly packaged applications. As a lender we value highly ‘right first time’ packaging as it means we can process applications quicker with less work for the broker to do – a win:win situation for brokers and their customers.”
Martin Reynolds, chief executive of SimplyBiz Mortgages, added: “Now that MMR has been delivered we are keen to refocus on continuing to develop the business opportunities for our members. This research shows that market sentiment is in a good place and gives us and our lender partners a good steer on where to focus our efforts. I am delighted that NatWest has worked closely with us on getting opinions on our members as it demonstrates that they are committed to supporting our business.”
