Mortgage market easing despite 3,388 criteria changes so far this month
Mortgage lenders are starting to ease their acceptance criteria and lower the deposit requirements following recent changes to the coronavirus lockdown rules.
Data from Knowledge Bank shows there have been 3,388 mortgage criteria changes so far in May as the lenders return to the market. More of the banks and building societies have started providing 10% deposit mortgages and lowering the price of their fixed rates.
Santander was one of the biggest lenders to tighten its lending rules, but it has raised its maximum loan size to £1 million, while West Brom recently launched 30 new rates.
Some of the bigger lenders have acted to make it harder for some borrowers to get finance to help them ensure their mortgages are affordable.
NatWest is asking the self-employed to provide more information about the sustainability of their businesses when they apply for a mortgage. Other lenders are not using as much bonus income or commission when they work out how much they will provide for a mortgage.
Aaron Strutt, product director at Trinity Financial, says: “The market is looking much more positive than it did a few weeks ago and if you are looking for a cheap fixed-rate, and your income has not been hit but the coronavirus, then you have a lot of choices at the moment. HSBC for Intermediaries recently lowered the price of many of its mortgages and the bank has some incredibly cheap deals
“We have had a wide range of enquires over the last few days from people with different requirements. Some of the calls have been from first-time buyers and others wanting to remortgage and secure cheap rates. Our brokers have spoken to wealthier clients looking for £1 million+ mortgages to buy country homes and buy-to-let landlords keen to purchase more properties. High street lenders have declined some borrowers, and others are buying properties in Spain.”
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