Good news for first-time buyers - Clydesdale/Yorkshire Bank has brought back its 90% LTV mortgage.
Many lenders pulled a lot of their products from the market at the start of the pandemic and imposed tighter restrictions on their lending criteria so it’s great to see a mortgage product like this back on the market. Additionally, the “almost zero” base rate from the Bank of England is good for those on tracker mortgages, first-time buyers and those looking to remortgage. This all means that borrowers are in a better position than they were back in March.
However, those looking for a mortgage with only a 5% deposit may still experience lengthy delays as mortgage lenders still require physical valuations at 95% LTV. Unfortunately there aren’t many lenders offering a 90% LTV mortgage that also use automated valuations for both house buyers and those remortgaging.
There’s currently a backlog of valuations
Research has shown that around 370,000 house purchases have been delayed because of the coronavirus lockdown. And at least 60,000 of those will require a physical valuation and so clearing the backlog is not likely to be quick.
The housing market has been hit hard during this coronavirus pandemic and many within the sector have been furloughed and may have to be brought back in waves which could delay things further. Additionally, according to The Royal Institute for Chartered Surveyors, the average age of a surveyor in the UK is 55 which means many surveyors fall into the most vulnerable age group at risk of serious complications from coronavirus and may have to wait to return to work.
So whilst UK lockdown regulations now allow for physical viewings and valuations to take place, virtual viewings and valuations could help with the backlog and could speed up the process.
Get help from a mortgage broker
If you’re looking to buy a new home or you’re in need of a remortgage, accessing higher LTVs can increase the speed of completing a mortgage by selecting a lender that will use an automated valuation on the property. As mortgage brokers in Manchester, our team can help you get the very best deal on the market. Contact us today to get started.
