With many borrowers hit hard financially by the pandemic, lenders have been busy arranging mortgages payment holidays to tide them over. This, coupled with call centres closing and staff working from home, and the inability of surveyors to physically value properties, means it is no surprise that lenders introduced lending restrictions while they got to grips with these challenges.
However, with lockdown easing, lenders are relaxing restrictions and the good news for borrowers is that lending is getting back on track. Lenders certainly have plenty of money to lend – that’s never been the issue, more market conditions which have made things difficult. High-street lenders are returning to large loans, with Barclays now lending up to £5m on two-year base-rate trackers at 60 and 75 per cent loan-to-value (LTV). This follows Yorkshire Building Society which also returned its maximum loan size to £5m last week and opens up the options for borrowers who perhaps aren’t best-suited to a private bank.
Rates also continue to fall – Virgin Money cut rates last week while Barclays is reducing its two-year fixed rate at 75 per cent LTV and its five-year fixed-rate at 60 per cent LTV on the back of falling Swap rates and the desire to compete for business.
ther lenders have been returning to higher LTVs, with Accord, Clydesdale and Yorkshire BS now lending up to 90 per cent once again. Newcastle Intermediaries is back with interest-only mortgages with some new two-year fixed-rate options. These might suit borrowers requiring more flexibility who are in receipt of regular bonuses which can be used to pay down the balance.
With an increasing array of lending options, it is worth seeking advice from a whole-of-market broker such as AWS Financial Services to find what is out available for your particular circumstances. Please get in touch for more information.
Whether you’re a first-time buyer, second-stepper moving into a bigger family home or experienced investor, AWS Financial Services sources you the right mortgage and protection. We are whole-of-market, enjoying strong relationships with high-street lenders, specialist providers and private banks.