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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.
At a glance:
Government finally stepping in to help homeowners caught in the EWS1 process
After years of current homeowners, brokers and surveyors highlighting this as a major issue the government have finally stepped in and are taking action to release tens, if not hundreds of thousands of mortgage prisoners, by making their properties mortgageable again so they hopefully sell or remortgage without months of delays and expenses. Owners of flats without cladding will no longer require an EWS1 form, and there are approximately 450,000 owners who will benefit from changes.
Are 90% LTV mortgages back?
It has been a tough time for borrowers with low deposits, and for a time they have in effect been excluded from the market altogether. However, Accord, who had been flirting with this space for some time, offering products at this LTV for a day here and there are re-introducing a 90% LTV product into their core range.
Increase in enquiries capital raising for home improvements
While the growth in the purchase market has been widely documented, we have also seen an increase in the number of enquiries for capital raising for home improvements. This is very much borne out of the Covid pandemic and may actually be borne out of the increase in house prices as people decide to stay where they are and improve their homes instead of moving… The primary focus of these enquiries has very much been about increased space for homeworking, whether that be an extension for an office or structures in the garden, again a sign of the times…
Nationwide extend their interest only and part and part option to home movers
Interest only and part and part interest only and capital repayment product has been extended to home movers by Nationwide this last week and is exclusively available to brokers. The terms are somewhat restrictive and ultimately this is aimed at the higher end of the market as it is not available to first-time buyers and comes with a maximum LTV of 60%, minimum income requirements of £75k for sole applicants and £100k for joint and minimum equity requirements on top of this. However, this does provide borrowers who tick the criteria, with increased affordability if they desire it and although it somewhat reflects other lenders propositions in this space it is another great tool to add to a brokers belt.