It is no surprise that the financial uncertainty surrounding the Covid-19 pandemic has led to drastic changes regarding the number of mortgage products on the market. In particular, since mid-March 2020 lenders have severely restricted low deposit mortgage deals, requiring larger deposits in order to secure a mortgage when mortgage applications are made. Initially, most of the big-name lenders withdrew 75%+ mortgage deals, meaning buyers had to stump up a minimum deposit of 25% in order to be considered. However, although many of these products have now come back on to the market, 90%+ mortgage deals requiring only a 10% deposit are still few and far between. According to leading financial information company Moneyfacts, there were 779 90%+ mortgage deals available at the beginning of March, compared to around only 60 this month!
Furthermore, lenders have also tightened up their general lending criteria with many lenders refusing to even consider mortgage applications from people on furlough without a set date to return to work. Self-employed people have also been facing more rigorous affordability checks to ensure that they would be able to fulfill the mortgage payments when they make their mortgage applications as the economically uncertain times continue.
The good news, however, is that mortgage lending has begun to increase since the end of lockdown and some lenders, such as Nationwide have this month brought back a 95% mortgage deal for existing customers looking to remortgage suggesting that further lenders may follow suit in the near future.
Despite some encouraging signs, the unpredictable nature of the current mortgage market makes it especially difficult for potential buyers to navigate when making their mortgage applications, especially for those with a smaller deposit. Thankfully, help is at hand from Andrew Douglas Wills & Legal Services as we are proud to offer an Independent Mortgage Brokerage service via our trusted partners. As Independent Mortgage Brokers, the experienced team has unrestricted access to each and every product currently available across the market to ensure that you are matched with the best possible mortgage deal for your situation. Our team are currently working fully remotely, and are therefore able to take enquiries from across Essex and the rest of the UK.
To arrange your free initial consultation, call Andrew Douglas Wills & Legal Services today!
If you would like to keep up with our latest posts and advice about estate planning through the regular advice that we provide to our clients in this regard, then please also feel free to –
Follow us on Twitter at https://twitter.com/ADouglasWills
Follow us on Facebook at https://www.facebook.com/AndrewDouglasWills
Follow us on Google+ at https://plus.google.com/b/117915389310253337582/+AndrewdouglaswillsCoUk/
