Mortgage Lenders Take Tentative Steps Towards a New Normal
Since lockdown began in the UK, mortgage lenders have all but stopped trading. Now, a glimmer of optimism is returning to the market.
After what seems like a very long time indeed, some of the major banks and building societies in the UK have made tentative steps towards a semblance of normal.
Among the early optimists are Santander, Halifax, and Nationwide. All of which have introduced new measures to ease the financial markets back into trading.
At the start of lock down, all these organisations reduced the largest size of loan they offer. Now Nationwide, the country’s largest building society, has gone from 75% to 85% loan-to-value mortgages, and Santander has increased its maximum loan size up to £500,000.
Industry experts see this as the first steps in the right direction.
Kimberly Holgate, a property law specialist and director of Real Legal, commented:
“This is great news for everyone. The demand is there, that situation hasn’t changed, but the lockdown restrictions have slammed the brakes on the property market.”
“What we are seeing here is not quite a return to normal, but a new normal that is likely to be with us for many months to come. It’s encouraging, and it shows that people find a way. Businesses solve problems, that’s why they exist.”
One of the biggest problems facing mortgage lenders is how to do a proper valuation of a property while social distancing. That’s why we’ve seen more 60 or 70% mortgages being offered, and only to those able to pay large deposits. But now businesses are trying to find ways around that problem too. There are organisations offering indicative online or remote valuations with the proviso that they will be able to come and do a more thorough valuation in person once the lockdown restrictions have been lifted.
Lenders are still being cautious, but many have promised to take the borrowers full income into account, even if they are currently on furlough leave and receiving the 80% salary guaranteed by the government.
The friendly team at Real Legal are experts in this field and they are more than willing to discuss your options with you. They know all about property law and they can help you remotely.
Visit the website reallegal.co.uk or call 0345 646 0501 for a conversation with a solicitor.