Mortgage market set for slump
Whilst some lenders have become compliant early Penn admitted it was “concerning” that the majority are still to confirm their readiness.
He said: “The first three to six months following MMR will see the residential mortgage market slow as lenders adjust to the new environment.
“Whilst we have seen a number of lenders become MMR compliant before the implementation date they are still only the minority. With just 26 days left until implementation it’s concerning.”
And Penn predicted a change of target for lenders with the buy-to-let market moving further into the crosshairs.
He said: “Lenders are going to have to look to other areas, such as the un-regulated buy-to-let market, as they look to hit targets.
“We are already seeing this to an extent with lenders offering good quality rates, free legal’s and valuations and cash back offers.
He also said lenders will need to rely on brokers more over the coming months.
Penn said: “As we move forward lenders will have to increasingly rely on brokers. Whilst lenders are still looking to implement software brokers generally feel ready for MMR.
“Brokers have an excellent opportunity this year.”
The MMR comes into effect on April 26.