Almost three quarters of mortgage brokers (74%) are worried about  the impact of the incoming European Mortgage Credit Directive (MCD) on overall lending activity over the next year, according to new research by the Intermediary Mortgage Lenders Association (IMLA).

IMLA's latest Intermediary Lending Outlook research shows a similar number of lenders (71%) take the same view as MCD implementation approaches, with a six month window from 21st September to 21st March to adopt the new rules.

Unlike last year's Mortgage Market Review (MMR), many of the MCD changes are of a technical nature: involving new approaches to disclosure and documentation rather than major changes to advice, affordability criteria or lending decisions for residential mortgage borrowers.

Nevertheless, two fifths of brokers (40%) believe a smooth implementation of the MCD will be more challenging for the industry as a whole than MMR, including 11% who believe it will be significantly more challenging.