May was a truly great month for new business
with AToM recording our best month for actual new applications received, since
October 2009. However, for all the
jubilations this may bring, it’s probably been the toughest month for actually
getting cases through to offer via the lenders.
For example, one high street named super giant has decided that on all
loans under a certain percentage of the property value, they won’t need a full
physical valuation. So rather than a
surveyor going in to the property to view all the details, they just drive
past…! In one recent case, the drive by
valuer decided said property was worth £35k less than the owner thought
(despite the property next door selling for the same price in Nov 2011). We were then told in order to challenge the
valuers decision, we had to provide two comparable properties that have been
sold in the immediate vicinity within the last 120 days! Nigh on impossible…yet remember the adjacent
property had sold for the same amount, just six months ago! No two days are the same in the mortgage
market, but many are very frustrating!
Then, we are witnessing the demise of
interest only as a repayment option.
Virgin Money have now followed most others and reduced their 75%
Interest only offering down to 70% with an acceptable repayment vehicle, ISA
etc, and only 60% LTV if Sale of Property is to be used. The days of Interest Only are surely numbered!
Finally, on the up side, we’re seeing a lot
of the smaller Building Societies and Mutuals offer products that may not be
looking for mass volume, but which do fit gaps in the market or which are
looking to assist the more complex scenarios that won’t fit the normal high
street mould. Examples recently placed
include, properties in trust, lending to those already in retirement, cross
collateral charges (more than one property), lending to those not paying UK
tax, guarantors, shared ownership and more.
As our name suggests, All Types of Mortgages for all types of people!
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