At White & Sons we work very closely with a mortgage specialist firm, Bond & Associates, who have access to a very large comprehensive range of the market. They have been keeping us up to date with all of the temporary changes within the High-Street mortgage market.
This week they have updated us with some good news, which we wanted to share. They are seeing that lenders are now starting to slowly change their lending criteria, for the better, which can be summarised as follows:
- Majority of lenders have max lending of 75% - 85% on new purchases.
- They have 1 or 2 lenders who are still lending up to 90% on new purchases.
- AVM (Automated Valuation Model) are going well, if the client or lender wants a physical valuation, their cases are being put on hold until they can get a surveyor in.
- Most of the lenders who had pulled lending altogether have now come back and are offering lending up to 85%.
- Re-mortgages are very popular!! Clients are taking advantage of the historically low rates.
- Most Lenders are lending up to 90% LTV (loan to value) for re-mortgages.
Now that the lending limits have increased, what the lenders are now focusing on is:
- How the clients are being paid, are they/will they be furloughed, how are their jobs and income being affected by Covid19.
- If they are, then they will only accept furloughed incomes if applying for the mortgage now.
- Some lenders are not accepting bonuses, overtime, commission or any additional income - this isn’t true of all lenders.
Bond & Associates are still dealing with lots of applications. For clients who are looking to move home but need to wait, for obvious reasons (or anyone for that matter), they have some fantastic deals where you can fix your rate for 2 years, but there are NO early repayment charges at all - this gives flexibility for moving home, overpaying as much as you like, having no tie whilst having the stability of a fixed rate & monthly payment.
Indication of the lowest rates on the market (some of these rates are only available through Bond & Associates):
- Re-mortgage 60% LTV is 1.20%
- Re-mortgage 85% LTV is 1.44%
- New Purchase 60% LTV is 1.19%
- New Purchase 85% LTV is 1.49%