The market has slowed over the last week or so. This is surprising as we've seen many lenders reduce rates again, with some being adjusted by a huge 0.7%. The number of products now available is circa 9,000 which is more than it has been for some time. With many short term fixed rates sub 2%, five year fixeds sub 3%, and even a ten year fixed at sub 4%, the remortgage market should be booming!
However, even with a slight slow down, there are many unusual properties being purchased. AToM recently assisted with the purchase of a property that had been split in to seven individual flats and where the title has not been split. In essence there was only one title for seven properties. Normally lenders stipulate a separate title for each unit. Valued at £1.9m and a loan of £1.4m being required, many of the normal lenders declined their interest. But, due to the customer being an experienced landlord, we managed to find a specialist lender who would accept the whole scenario. Following an in-depth valuation, confirmation of rental income achievable for each property, and normal underwriting, the lender completed quickly. This is just one example of many complex and specialist scenarios that pass through our doors each week!
Finally, credit scoring is still creating challenges for mortgage applications to high street lenders. Most lenders credit score applications based upon the amount of credit you have, whether you are on the electoral role and your recent payment profile. If the computer says ‘no’, you will tend to find all high street lenders doors shut to you. Fear not, if you want a loan to value of 90% or less and you can prove income, there are lenders who do not rely on a credit score. They manually review and underwrite clean and affordable applications on an individual basis. AToM has access to a number of these lenders so don’t despair if the high street lenders say ‘no’, if you fit the above profile, give us a call to see if we can assist.