I attend several weekly and, in some cases, twice-weekly mortgage market updates and the message is clear that lenders are trying to get ‘back to normal’ but it is without doubt a new normal.
I have received two serious enquiries recently where I have, sadly, had to explain that we were not able to proceed where, we could have just a few months ago.
One client is on furlough and fully expects to return to work full-time shortly but lenders will only accept the furloughed salary i.e. 80%. There appears to be just 4 lenders in the market that will even consider using the full salary where the employer is ‘topping up’.
The other, a young couple, First Time Buyers that needed 95% mortgage, again this wouldn’t ‘normally’ be a problem. Plenty of income to support the borrowing level but no lenders in the 95% market in fact only very few lending at 90%.
On this Monday’s update there were 964 criteria changes across the market, this on top of 773 last week 474 the week before and 1086 the week before!!
So good luck if you are trying to go it alone.
Using a “Whole of Market” mortgage adviser is more important than ever.