A Happy New Year to you all!
In the last 12 months, we’ve seen many new lenders launch in to the mortgage market in addition to the current batch fighting for business by offering low and attractive rates with freebies including valuations, free legals and even cash backs.
I see 2017 offering a lot more to First Time Buyers including more products aimed at those with smaller deposits. Shared Ownership opportunities and Right to Buy mortgages will also increase as local authorities push schemes to help get people on the property ladder.
The easy business for the high street lenders is for Home movers and those looking to Remortgage. Simple and straight forward, with some of the best rates available and subject to clients credit scores, these should be all computer decision based.
Without doubt, the most in-demand side will be the more specialist Buy to Lets, Houses of Multiple Occupation, Holiday Lets, Student Lets, basically whatever will bring in the best return for investment. Despite the Prudential Regulation Authority introducing new rules, and considerable tax changes being implemented over the next three years, this will still be a huge part of the market as returns on savings remain low and people look for other ways to invest and make money.
But of course as volumes increase, those with credit issues, or adverse may be turned away by the high street. More and more lenders are launching ways to help this sector. Nearly anything is acceptable from missed mortgage payments, to bankruptcy, to debt management plans, to payday loans. Strict terms and conditions apply, but seek specialist advice as these can now go right up to 90% of the property value.
And let’s not forget the over 65s. Lending in to later life is a huge part of the market and more and more lenders are offering products to this age bracket. Some with unlimited age restrictions. As long as the loan to value is good and affordability fits, why can’t anyone have a mortgage?!