I mentioned last week that the mortgage market is buoyant.\u00a0 And it is.\u00a0 However, there have been some \u2018ripples\u2019 in this with three well known lenders (in the specialist sector) closing their doors, or revisiting\u00a0their funding options in the first quarter of the year.<\/p>\n
Sadly, last week there was another casualty of the uncertainty of funding lines (and Brexit) that is facing us all as Magellan Homeloans shut their doors.\u00a0 Being a local specialist lender, based in Leatherhead, this is a real shame as they considered mortgages for those with a credit blip, help to buy schemes and specialist buy to let.<\/p>\n
The Lender\u2019s CEO stated \u2018The competitive landscape has continued to shift, mortgage loan interest rates are reducing when the cost of funding is rising, and some lenders are taking on more credit risk despite the volatile economic backdrop.\u00a0Magellan has prided itself on maintaining excellent credit standards whilst helping\u00a0customers who have been disenfranchised by high street lenders. However, we do not wish to compete in a market which we view as unsustainable.\u201d<\/p>\n
We obviously wish all their team well for the future.<\/p>\n
Is this the start of further lenders pulling out of the market\u2026..who knows?\u00a0 But we are set for a long period of uncertainty and if you are looking to review your mortgage finances, maybe you shouldn\u2019t hang around.<\/p>\n
Conversely, with some lenders recently reducing rates and chasing completion volumes, we are seeing more people being declined.\u00a0 Not necessarily due to adverse credit, but because their credit score is not as high as they thought, and they don’t meet the lenders requirements as a result.<\/p>\n
Credit scoring is one of the most widely used means to assess a customer\u2019s ability to obtain a mortgage.\u00a0 All credit scores include a credit search \u2013 this is a review your financial history, payments to utility suppliers, mobile phones, etc.\u00a0 The high street lenders, in the main, use credit scoring.\u00a0 However, do your homework as many smaller lenders will offer just as attractive rates, but they will manually assess your ability to obtain a mortgage and use a human to assess your credit profile, rather than a computer aided credit score decision making system.\u00a0\u00a0And make sure you deal with someone who has access to the whole market, so you get the best possible options for your requirements.<\/p>\n","protected":false},"excerpt":{"rendered":"
I mentioned last week that the mortgage market is buoyant.\u00a0 And it is.\u00a0 However, there have been some \u2018ripples\u2019 in this with three well known lenders (in the specialist sector) closing their doors, or revisiting\u00a0their funding options in the first quarter of the year. Sadly, last week there was another casualty of the uncertainty of […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"slim_seo":{"title":"Another lender closes it's doors citing 'cost of funding'. Should we be worried? - Impact Specialist Finance","description":"I mentioned last week that the mortgage market is buoyant.\u00a0 And it is.\u00a0 However, there have been some \u2018ripples\u2019 in this with three well known lenders (in the sp"},"footnotes":""},"categories":[1],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.impactsf.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/8442"}],"collection":[{"href":"https:\/\/www.impactsf.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.impactsf.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.impactsf.co.uk\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.impactsf.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=8442"}],"version-history":[{"count":0,"href":"https:\/\/www.impactsf.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/8442\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.impactsf.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=8442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.impactsf.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=8442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.impactsf.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=8442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}