Remortgage lending fell in the month of April and most reports blame the decline on the Mortgage Marketing Review which requires borrowers to qualify for loans through disclosure of their spending and saving habits.  What was meant to help make borrowing more responsible could have kept some homeowners away or it could have caught some by surprise.  While most discussions on the MMR surrounded mortgage lending, it could have been that many homeowners failed to realize it would also impact remortgage lending.

According to data from Mortgage Advice Bureau, remortgages in the month of April fell by 12% from the previous month.  The average remortgaged property increased by 6% in April to £299,375.  Lenders increased their remortgage products available to remortgage brokers by 5% while remortgage offers available directly to borrowers fell by 2%.

Brian Murphy, head of lending at Mortgage Advice Bureau, said, “It's a promising sign that confidence appears unshaken among younger borrowers. We have seen the average age of buyers seeking a mortgage slowly falling over the last twelve months, which is a symptom of greater opportunity and movement in the market.

“A degree of slowdown was inevitable in the run-up to MMR, particularly given the exceptionally busy start to 2014. With applications up 29% year-on-year, the mortgage market remains open for business and in far better shape than it was a year ago.

“MMR has made getting advice an integral part of securing a mortgage, and we are already seeing the consequences with a significant shift in the focus of new products from direct to intermediary channels.

“With lenders targeting different consumers and taking different approaches on affordability, seeking a view on products from across the market will become the best way to find one that suits your needs.”