There’s good and bad news out there in the mortgage market as lending continues to be something of a minefield.
On the one hand, there are good signs for people with just small deposits as confidence returns a little and 90% mortgages become more accessible.
But the news is less good if you are self-employed and have taken advantage of any of the Government support during the pandemic.
Let’s start with the good news and it involves signs that lenders are starting to feel a bit more confident about lending to those with just a 10% deposit.
This week, the Yorkshire Building Society announced a new range of home loans for borrowers with a 10% deposit, albeit at a higher rate than their loans for people with a bigger deposit.
In recent weeks, lenders like the Nationwide, Accord and Platform have all been making 10% deposit mortgages more accessible too.
During the first Covid-19 lockdown, some 90% of 10% deposit mortgages disappeared from the market.
They have been slowly coming back but often with tough criteria. Happily, these criteria are starting to relax a little too, with the Nationwide, for example, now saying it will allow fully gifted 90% deposits from the second week of December.
The picture isn’t quite so rosy if you are self-employed and in particular, if you have taken up any of the Government support during the pandemic.
The NatWest said this week that it was to stop offering mortgages to people who had received the Self-Employment Income Support Scheme (SEISS) grant.
The TSB has reduced the maximum it will lend self-employed people to just 75% of the property’s value. Santander, meanwhile, has toughened up the evidence criteria it demands before lending to the self-employed.
It’s complicated out there and now, more than ever, it is really important to weigh up your options and get proper advice before making decisions.
Due to the current restrictions over coronavirus, I’m not doing face to face discussions at the moment, but am more than happy to do free, no-obligation consultations over the phone on 07767 692 653 at a time to suit you.
Or, if you prefer, you can contact me by email at mgrayshan@googlemail.com and I’ll help you with any mortgage or insurance issues.
For more details on the services I offer please visit www.markgrayshan.co.uk
In the meantime, stay safe.