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.