When Covid-19 hit and the lockdown followed, banks and building societies started to withdraw their high loan to value purchase products from the market. Now the lockdown has been relaxed have the lenders relaxed as well?
Two months ago, if you wanted to buy a property with a 5%, 10% or even 25% deposit you were going to struggle to obtain finance. Valuer’s could not visit properties, so mortgage lenders had tried to rely on remote and online valuations.
Valuer’s can now access a property, but lenders are still cautious and are trying to persist with these virtual visits. This means that small deposit lending is fragile and even though Virgin Money, Clydesdale, TSB, Barclays and Accord brought out 85% and 90% products in the last couple of weeks, they have quickly removed them due to the surge in applications. HSBC remain one of the few high street lenders currently offering a 90% product. Obtaining one however, is not easy. They have limited funds which need to be booked by the broker/applicant first thing in the morning. If you are a couple minutes late you will need to wait 24 hours before trying again.
Coventry dipped their toe in on Friday 12th June with a 10% deposit product but this is only with two 5 year fixed rates, and they removed these products on Monday 15th June!
If your deposit is 15% of the property value you should have much better luck, Halifax, Barclays, Skipton, Santander, West Bromwich, Nationwide and others can all help. One of the largest lenders NatWest is still holding off as you will need a 20% deposit to be eligible for their deals.
Best advice is to keep checking or ask your broker as the market is changing daily.
If you would like some help you can call Ideal Mortgage Advisers for free advice
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