With lockdown measures starting to ease, the government has turned its attention to getting the economy moving. The housing market has always been at the heart of our economy and the whole industry is gearing itself up for a return to business as usual for the second half of the year.
Most mortgage providers took the decision to cut mortgage borrowing down to around 75-85% of property values a couple of months back. This was mainly due to the fact that most “high loan to value” lending needing a surveyor to carry out a physical valuation, which became impossible due to social distancing restrictions.
HSBC (somehow) managed to keep their 90% lending going throughout and this week Accord mortgages, Virgin Money and the Clydesdale bank all announced the welcome return of their 90% products.
Other lenders are expected to follow suit over the coming weeks and one or two have indicted that 95% mortgages will be available by the end of June.
Part of the wait is simply logistics. The banks had to send their staff home to work, which meant call centres and processing centres fell behind. Some of the delays will be due to the massive backlog of cases which they are having to deal with first.
If you are looking to buy this year, the deals on offer are fantastic with interest rates at an all time low! However, lenders have all looked at their criteria, particularly at borrowers’ incomes in light of changes due to furloughing. We would therefore recommend that anyone looking to buy checks out their mortgage affordability with a Mortgage Adviser before viewing property.
For more information contact us or speak to a mortgage adviser on 01628 507477.
Recent posts
More borrowers using equity release
Yesterday
Almost one in five equity release mortgages are now taken out to provide financial support to family.
Buyers purchasing properties sooner
3 days ago
According to industry data, the expected wait for those looking to buy a property has dropped from just over 11 months to less than six months.
It is common for your first mortgage payment to be higher than your subsequent monthly payments for two reasons.
What to do just before you get your keys
8 days ago
Firstly, a big congratulations, you’ve now exchanged contracts! After weeks and months of waiting, you are about to move in. What should you do first?
The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.
Landlords could face a new tax this autumn
29 Aug 2025
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
More information
Trusted by
