The current market
Lenders have reacted to COVID-19 in a relatively uniform way, which has been to restrict lending and lower their risk profile by asking for larger deposits. It is generally a 15% deposit market now for First Time Buyers and Home Movers.
Occasional 10% deposit mortgages pop up, literally, sometimes only available for 48 hours and on higher fixed rates for longer periods, so lenders are tying people in for the medium term, with penalties on higher fixed rates.
In addition to restricting the availability of mortgages for risk purposes, lenders have an operational crunch. With staff working from home they are less efficient and can process fewer applications. Mortgages are being priced accordingly to restrict new business.
This is all in the face of huge demand from home buyers, the chancellors Stamp Duty cut for purchases up to £500,000 has seen a shot of adrenaline go into the market with some lenders reporting record ever levels of business. The stamp duty cut has helped many decide that it is the right time to move and the First Time Buyers left frustrated by the deposit demands have been replaced by Buy to Let landlords in great numbers.
If you're self-employed...
Specialist advice has never been more important for Self Employed and Limited Company Director customers. Many lenders are nervous lending to the Self Employed at the moment, with greater underwriting demands it is important to know which lenders are good and bad to approach, we can help here.
Good news for those looking to upsize, downsize or invest...
With a decent deposit interest rates remain at record lows and there are huge opportunities for people looking to upsize, downsize or invest in the property market. The property market remains open in Lockdown 2.0
Review your mortgage...
If you need any advice before speaking to your lender about a payment holiday, or you want to review your mortgage options in any way please do not hesitate to get in touch.
Get help with your mortgage...
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