mortgage lender

After a temporary but stressful lockdown period of the mortgage market due to corona, the lenders are now coming back. The lending business and the borrowing process are sure to gain a good pace now.

Higher LTV is back

All the big names like Santander, Virgin Money, Nationwide, and Halifax are now back with their high LTV products. It is a massive relief for the borrowers as, before this, only those with a considerable amount we’re able to get funds. Currently, the maximum LTV in the industry is 85%. Nationwide has this maximum percentage to offer while Halifax offers 80-85%.

Previously, only those with 25% equity were able to apply for the mortgage. It also became the cause for the deposit to swell-up in size.

Why did the lenders decided to come back?

Well, the reason is very natural. Now, the lenders have attained the confidence of working online. However, there are certain constraints on the part of the valuation, as the lenders are not able to arrange physical verification of the properties. However, for that, online valuations are working well. The mortgage companies have accepted the fact that they can continue working while using the IT skills and power available to the human world.

The other things…

The deposit part is still not as low as its general minimum level of 5%. The borrowers need to make it at least 10% to get approval. A significant reason behind this is the change in the income status of the applicants. Many are on the furloughed income, and many get salary after the deduction of a significant percentage. The lenders have mentioned to every mortgage broker associated with them to send a total figure of the earned income of the borrowers.

The wave of action is here again in the mortgage market, and that is a good sign for the future. However, the corona effect is still there, but as all expected, the lending industry will earn normalcy in the coming months. Mutual concerns of lenders and the borrowers are back now on the same platform.