Call us: 0345 305 2540

90% first-time buyer mortgages come back on the market

LATEST NEWS | 10.06.2020

Good news for first-time buyers – Clydesdale/Yorkshire Bank has brought back its 90% LTV mortgage.

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.

Talk to us

If you're unsure and need some advice just give us a call, our expert team of advisers are available to help you choose the mortgage that is right for you.

0345 305 2540 info@taylormade-finance.co.uk

By clicking on the above link you will be leaving the regulated site of TaylorMade Finance Ltd. TaylorMade Finance Ltd is not responsible for the accuracy of the information contained within the linked site.

Where you have a complaint or dispute with us and we are unable to resolve this to your satisfaction then we are obliged to offer you the Financial Ombudsman Service to help resolve this. Please see the following link for further details: http://financial-ombudsman.org.uk

Your mortgage will be secured against your property.

Your home may be repossessed if you do not keep up repayments on your mortgage.

For mortgages we can be paid by commission, or a fee of usually 1% of the loan amount.

TaylorMade Finance Ltd is authorised and regulated by the Financial Conduct Authority.

The Financial Conduct Authority does not regulate Will Writing and some aspects of estate planning. Buy-to-Let Mortgages and Secured Loans.

The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.