2020 has been a somewhat challenging year for many, with the global pandemic changing many aspects of life, including the mortgage market.
Arguably, first-time-buyers and high loan-to value (L-T-V) borrowers have been most affected by these changes. However, could there be some welcome light at the end of the tunnel? The number of mortgage deals available to those with a 10% deposit increased significantly in November 2020 reaching a level that hasn’t been seen since 1 June 2020.
As of the 30 November 2020, there were 81 lenders offering 90% L-T-V products, an increase of 30 since the lows of October. This highlights that lenders now have a more positive outlook on future lending than in the depths of the first lockdown.
On the flip-side, it’s worth pointing out that although these products are being re-introduced into the market, there are still far fewer available than during pre-COVID times. In addition, the future of lender eligibility testing for 90% loan-to-value products could become far more stringent.
Proof of income and credit history will play a significant factor in the lender’s overall decision going forward and it’s fair to say that many people’s finances have suffered during 2020 which could adversely impact their chances of obtaining a 90% L-T-V mortgage product.
Despite all this, buyers can at least now start to feel more confident that the purchase of their dream home could be a little closer on the horizon, even if it’s going to be some time before we get back to the pre-COVID levels of overall mortgage availability.
If you’re looking to purchase a new home during these times it could save you both time and money to work with an independent broker to truly make sure you are securing the best deal possible, especially with the more in-depth lending criteria set out by lenders.
Here at Mortgagez, our team of fully qualified mortgage advisers is on hand to help you every step of the way in obtaining a new mortgage and our service won’t cost you a penny when you go via our online portal. Visit our website today and obtain a quick quote to see how much you could save on your next mortgage.
YOUR HOME MAY BE REPOSSESSED IF YOU DON’T KEEP UP REPAYMENTS ON YOUR MORTGAGE
Any guidance and/or advice contained within this document is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. Any technical or regulatory information contained within this document was correct at the time of producing it but as it may be subject to change it should not be exclusively relied upon when making a financial decision. The Financial Conduct Authority does not regulate advice on Buy to Let mortgages.
Article written: Dec 2020 141220 MZ000154
