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This is our take on what is currently happening 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.
TSB are the first mainstream lender to offer sub 1% 2-year fixed rate mortgage
We recently saw Hinckley and Rugby building society offer 0.99% on a 2-year Discounted Variable product, and now TSB are the first mainstream lender to go sub-1% in the more mainstream 2-year fixed rate mortgage product type offering 0.99%. It should be noted that this is still only available on remortgage products but marks a symbolic downward shift in the post-Covid lending landscape.
Borrowers struggle to find lenders for properties above commercial premises
We have seen an increasing number of declines from lenders for properties above commercial premises. This bucks the current trend for lenders across the board, relaxing lending criteria and increasing borrower’s affordability through various measures. We suspect this is do with the fact these properties are deemed far less attractive in the post-Covid lending landscape and thus potentially subject to bigger falls in house prices should there be any shocks to the market – these properties are often smaller, with limited outdoor space and in normal times are subject to various restrictions from lenders regardless. We are particularly seeing more borrowers declined when the commercial element is food based or has a late license.
Clydesdale increase max loan size at 90% LTV
Another major lender, Clydesdale, has announced further changes that increase buyer’s affordability this week, with some significant changes for higher LTV borrowers – including increasing the maximum loan size at 85% LTV, accepting flats and maisonettes and maximum term to 35 years at 90% LTV. However, most interestingly is the significant increase in loan size, also at 90% LTV for borrowers looking at properties in London and the South East, with larger loan sizes of £540k to £750k now available…