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?!
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