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.
Yesterday
Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months.
According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.
6 days ago
If you have recently moved into a property with a garden that requires a little TLC, or you’d like to get on top of your current green space, check out our tips.
9 days ago
High street lender, NatWest, have launched a new product to help first-time buyers purchase a property with assistance from a family member or friend to get them on the property ladder sooner.
10 days ago
‘Buy Now, Pay Later’ (BNPL) schemes, such as ‘Klarna’ are short-term loans that allow shoppers to make a purchase, but delay paying for it for an agreed amount of time.
Klarna is one of the most popular BNPL services with 18 million customers in the UK alone, and offers interest-free payment options which is appealing to shoppers. However, does it affect a mortgage application?
15 days ago
We look at how to get the best Buy to Let mortgage rate, what's in store going forward, and options as a landlord with increasing costs.
24 days ago
Throughout this past week, lenders have continued to reduce their mortgage rates giving borrowers in the UK some welcome news following the change in global tariffs under US President, Donald Trump.
24 days ago
Did you know that buying a house, or relocating is in the top 10 most stressful life events?
Stress of course is an unavoidable part of life and there are many reasons why people experience stress, not just buying a house!
There are lots of effective ways to manage and reduce stress, check out our tips to help you.
With the stamp duty relief ending in England and Northern Ireland, we have listed the top 10 cheapest areas for first-time buyers as published by Rightmove.