Call us: 0345 305 2540

Could low deposit mortgages help the property market recover after COVID-19?

LATEST NEWS | 03.06.2020

Rightmove has asked lenders to introduce high loan to value (LTV) mortgages back onto the market to aid the industry’s recovery.

There’s no denying the fact that the coronavirus has had a massive impact on the housing market. It’s certainly been a big talking point for those in the industry and those looking to get on the property ladder or remortgage.

Now, Rightmove has asked lenders to introduce high loan to value (LTV) mortgages back onto the market to aid the industry’s recovery.

At the start of the UK lockdown, many lenders removed a number of products from the market as caution took hold. Research shows the number of mortgage deals on the market reduced by more than half since 1st March from 5,222, to just 2,566 at the start of May.

And those most affected seem to be borrowers with a small deposit as data suggested 843 of the two and five-year fixed mortgage products which were pulled had LTVs of 75% or higher.

There has been some sort of rebound since then as lenders have relaxed their lending criteria and we’ve seen a surge in sales enquiries. But if more lower deposit mortgages came back on the market it would help to sustain and even accelerate this recovery.

Rightmove director, Miles Shipside, said:

“We’re now seeing clear signs of returning momentum, with the existing desire to move now being supplemented by some people’s unhappiness with their lockdown home and surroundings.

“Some may be unable or unwilling to move now, but those who are ready to take the plunge have jumped immediately into action.

“Unique enquiries on property for sale doubled from the day before, though we expect consistent momentum to rebuild over several months rather than weeks.”

Is now the best time to get on the property ladder?

If the housing market recovers quick enough and lenders start putting attractive mortgage deals back on the market then it’s unlikely that house prices will fall significantly. However, it’s still a good idea to speak to a mortgage broker about getting on the market. Similarly, there has been a spike in remortgage applications as people look to improve their financial outlook in the wake of COVID-19.

If you’re looking for a mortgage broker in Manchester, we can help. We’ll find you the very best deal on the market so whether you’re a first-time buyer or coming to the end of your fixed-term mortgage and you’re after expert remortgaging advice, contact the team today.

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

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:

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.