The Comeback of 90% MortgagesPosted on 18th December 2020 in News
The housing market in 2020 has been a rollercoaster thanks to the Coronavirus pandemic and getting mortgages has never been tougher. As mentioned in our previous blog post, as 2020 went on we saw interest rates climb, deposit levels increase and Loan to Value mortgage rates decrease dramatically. It put a halt on many people’s hopes of buying – but things finally seem to be turning a corner.
One by one, lenders such as RBS, Lloyds, Halifax and many more have started to roll out 90% deals again. Unfortunately, this doesn’t mean that everything is back to normal quite yet. Back in March, there were 779 different 90% mortgages available from a large variety of lenders, however at the start of September there were only 51 different 90% mortgage products available, and most of these had increasingly strict criteria that were incredibly difficult to meet. The number of 90% deals available has started to increase again, with 81 different deals available as of the start of December – however this is still a lot lower than the beginning of the year.
With such fierce competition between buyers to get funding, lenders have once again made their criteria even stricter than before. Some lenders aren’t offering 90% mortgages for new build purchases and are not offering 90% mortgage products to be used along with schemes such as Help to Buy. This means that speaking to an independent mortgage advisor has never been more important – it will not only ensure you the best deal, but it will help avoid any major hiccups further down the road such as having an Agreement in Principle from a lender who wouldn’t lend on the type of property you want to buy.
Mortgage advisor Andrew Dillon of Dillon Mortgages advised us “A chat with a mortgage broker will ease stress and give you clarity on who is the most suitable lender for your individual circumstances. We are here to help and support you through the process”.
For any help and support you may need in your buying journey, get in touch with us today.