Lenders want to lend, but in some cases are not able to, even to existing customers! Those who already have a mortgage, but took out their original loan before April 2014 (Mortgage market Review!) may not pass the same lenders new criteria. Reasons can include, original borrowing on a multiple of income, age, small equity levels in property. Lending rules have changed dramatically and more stringent measures are in place, as well as tougher reporting to the regulator. Lenders have to be sure the customer can afford their mortgage for a number of years ahead and stress test against possible rate rises. Seek professional advice if you are concerned or are looking for an alternative lender as some might be considered to be hiding behind the rules!
I was surprised to see that an increase in housing supply has led to two-thirds of homes selling for less than their asking price in July according to the National Association of Estate Agents. They report an 11% increase in the average number of properties for sale per branch last month from 46 to 51, the biggest increase seen in three years. However, increasing supply and declining buyer registrations (possibly as a result of the above restrictive mortgage options) resulted in around 66% of homes sold last month failing to meet their asking price.
Products though continue to increase and one of the fastest growth markets seems to be in the Ex-Pat sector. A British Ex-Pat in good employment is favoured by a growing number of lenders who are willing to provide a mortgage to help them obtain a Buy to Let property in
. The rules are tight but there are lenders who will advance up to 75% of the property value. Incomes usually need to be from a recognised multi-national business abroad and in a region upwards of £50000 sterling equivalent. A couple of lenders will also allow Ex-Pats to own a residential property in UK UK and where their family, usually off-spring, will reside pending their return to . UK
We are finding that criteria is the key to unlocking lenders appetite and you will not find this on most, if any, of the popular web-site offerings. Talk to your local professional mortgage adviser who will know how to access this important information quickly for you.