74% of brokers worried the MCD will impact lending

Almost three quarters (74 per cent) of brokers are worried the Mortgage Credit Directive may impact lending over the next year.

A survey of Intermediary Mortgage Lenders Association members and 150 brokers shows 71 per cent of lenders believe lending could be affected.

While the changes needed to be made to comply with the MCD involve new approaches to disclosure and documentation rather than advice or affordability, 40 per cent of brokers believe smooth implementation will be more challenging that the MMR.

Seventy one per cent of lenders believe implementation will be just as challenging as the MMR and 21 per cent believe it will be more challenging. 

Imla executive director Peter Williams says: ”The mortgage market has recently undergone a series of major adjustments, and the industry is once more facing a collective challenge to remain open for business while getting to grips with the latest changes to working practices. 

“It has been encouraging to see life returning to the market as this year progresses, and sentiment is about as positive as we have seen at any point since the MMR was introduced. The changes may be more of a technical nature this time round, but we must hope that the transition to the MCD rules does not weigh down too heavily on activity in the months ahead.”