New regulation to put brakes on mortgage lending in year ahead
A TRIPLE whammy of regulation is likely to significantly restrain growth in the mortgage market, which remains subdued in comparison to pre-crisis activity.
According to research released by the Intermediary Mortgage Lenders Association (IMLA) today, the onset of three new regulatory schemes will significantly dampen the mortgage market.
The Mortgage Market Review begins this year, while new macro-prudential measures and capital requirements weigh on the sector.
The IMLA also predicts that real-term gross mortgage lending will still be 47 per cent below 2007 levels next year.
“We must hope that the new regulatory set up will not artificially constrain the market when normal conditions return and greet consumer confidence with a false dawn,” said Peter Williams, IMLA executive director.