How can we help you?
We invite you to get in touch via a free, no-obligation initial consultation.
This is our take on recent news in the mortgage market. Our views are often cited in several national publications, including; BBC News, The Times, Telegraph, City AM, FT Adviser and Daily Mail, as well as a number of key trade publications, so this should keep you ahead of the curve. If you have any questions on any of these stories, or would like further information, please do not hesitate to get in touch.
Increased deposits and the Covid pandemic
We have seen many clients recently reporting increased deposits due to Covid, a stark contrast to many who have had their savings depleted and set back potentially years due to not earning or earning less during this period. These largely white-collar workers whose jobs have simply moved to the home have been able to save significantly more than they otherwise would without the pandemic and combine this with the SDLT holiday and they have a greater degree of affordability. We recently had a couple who pre-COVID had a 13% deposit and were waiting to buy midsummer 2020 when they would have a 15% deposit. Due to COVID they waited until now to buy a property and have reported due to not having train fare, holidays, and a London social life they have been able to save up an extra 5% deposit to help with their purchase… What does this mean in real terms? They want a 5-year fixed rate for security, they are buying at £550k and if they had a 15% deposit the rate would be circa 2.71%, they have a 20% deposit so now can borrow at circa 2.0%, a 0.71% saving for 5 years! On the £440,000 loan over the 5-year period they will save over £15,000…
Private Banks increased flexibility at £5m + loan amounts
We have recently been informed of a major private bank’s increased appetite for lending above £5m loans and the additional flexibility they are going to put in place at this level, with bespoke offerings for the right clients. At this level despite the large amount of debt, private banks can be both very flexible and offer some extremely good interest rates.
The importance of protection insurance: lessons from Covid
We have unfortunately had a couple of enquiries of late from those who have had a partner pass away unexpectedly due to Covid without provisions in place for their outstanding mortgages. This has meant that they are unable to afford the mortgage payments or unable to remortgage to the amount required and thus, are forced into selling their homes or stuck on a lenders high standard variable rate. This is not a nice situation for anyone, let alone when you are suffering from a bereavement. Whilst lenders can accommodate you to a degree for a period time, selling may be your only option in this scenario.