Like all businesses, Mortgage lenders are having to adapt to new ways of working with Covid 19, and each has responded differently, altering the way in which they do business, or making changes to their product ranges and lending criteria.
Lenders have a duty to ensure they lend responsibly, and many have changed the amount they will lend to customers.
There are currently far fewer options when borrowing over 85% of the property value, and borrowing over 90% can be particularly challenging.
Some lenders have introduced family assisted mortgages, which are designed to help first time buyers, and could be a great option for some.
The threat of a further downturn in the economy, and borrowers potentially being unable to keep up repayments on their mortgage is obviously a concern for lenders, and this is a particular issue for customers who are applying for a mortgage and whilst on the furlough scheme.
Some lenders will not take the furloughed income into consideration when assessing the loan, which in turn will reduce the size of the loan available. Other mortgage providers are still happy to consider lending, although finding the right lender for your own circumstances can be frustrating and very difficult.
There are lots of different things to consider when it comes to taking out a mortgage, and we would strongly advise all of our clients to speak to a Mortgage Broker who will be able to look at your individual circumstances.
A good mortgage broker will then be able to assist you in finding a number of different options, and help with advice and guidance on selecting the most suitable lender to meet your individual needs.
If we can be of further assistance, please do not hesitate to contact us, and we will happily introduce to our recommended advisor Peter Leadbeater of Purely Mortgage Consultants Cumbria. If you prefer, you can visit his website,please click here, and contact him directly yourself.
As ever, through this challenging time, stay safe.