The Team

Lenders loosen restrictions on home mortgages
28/04/2020
Lenders loosen restrictions on home mortgages

When the UK went into lockdown and the property market came to an abrupt halt, almost all of the mainstream mortgage lenders withdrew a huge number of their mortgage products. They were prepared to offer mortgages but required borrowers to put up 40% or more of their own money.

 

The argument the lenders put forward was that they had to support their existing customers during his difficult time whilst continuing to process ongoing applications that were already in the system.

 

Now that the initial shock of the lockdown has dissipated, we’re beginning to see lenders reviewing their policies and coming back to the market with higher loan to value percentages.

 

By the end of April, Halifax, Virgin Money, Nationwide Building Society and Santander made it easier for people to qualify for a mortgage. For instance, Nationwide reduced the amount a purchaser needs to put up as a deposit by offering loan of up to 85% of the value of the property.

 

We are hopeful that, before too long, we might see more Lenders coming back to the market with competitive deals and increasing the Loan to Value percentage. Getting back to 90% or 95% Loan to Value mortgages will help those struggling with the deposit to get onto or move up the property ladder.

 

Remember, too, about the availability of the various Help to Buy schemes. To find out more about these, please visit the Help to Buy pages on the Scottish Government’s website by clicking here.