Latest Mortgage News in Brief

Lenders Pull 90% LTV Mortgages From The Market.  

Some major players in the mortgage market have removed 90% loan to value mortgages form their available schemes.  A lot of providers did this in March but now more have decided to follow this route also. Some major players have took this action meaning a large drop in available LTV schemes of 90%.  This should only be a temporary action and we expect them to become available again once the market speeds up again and life goes back to normal after the recent events of the past 4 months.

 

Mortgage Holiday Extended By 3 Months.

Homeowners who are struggling financially due to recent events are still able to extend their mortgage payment holiday for another 3 months without affecting their credit rating. However people are being encouraged to pay their mortgages if they can afford to still and not take the holiday break just because they can.  The date to apply has also been extended though this depends on each lender with some giving until October to apply for 3 months extra repayment holiday.

 

But To Let Mortgage Deals On The Increase.

Good news for landlords as product numbers for BTL (buy to let) mortgages has increased meaning more choices and options for people considering going down this route for mortgages.  Many more lenders are now including BTL schemes in their product portfolio. Rates have increased slightly but with many options available now the market should start to improve in the coming months.

 

Remortgages On The Increase.

Remortgage instructions have risen by 6% compared to the same period last year during the first week of June.  However, completions have fallen also.  There are many factors that could be the reason for mortgage cancellations such as offers expiring due to the COVID-19 crisis and peoples income changing meaning previously offered mortgage deals may not now be affordable to the customer.

 

Mortgage Demands At Pre-Lockdown Levels.

Enquiries for mortgages in May were 57% higher then in April and at levels last seen in January of this year. Enquiries dropped around 17% each month in March and April. Since the ease of lockdown enquiries have quickly increased. The lockdown has allowed people more time to think about their long term future and living situation. Factors such as commuting time and home space have now become more important then ever and this could be making people look at their options in terms of upgrading their property.

 

Lloyds Fined £64 Million For Failing Struggling Mortgage Customers.

Lloyds Banking Group has been fined £64m by the financial regulator for its treatment of mortgage customers who were in financial difficulty. The fine is due to a lack of support for mortgage customers in arrears between the years 2011 and 2015. The bank knew about some of the problems in 2011 but failed to adequately solve them, the Financial Conduct Authority (FCA) said. Around 526,000 customers have received a lump share of £300m in compensation in relation to this. Fees and interest have been refunded back to the affected customers.

 

A Mortgage Holiday Could Hinder Your Credit Status.

Many people have taken a mortgage holiday during the past few months if their lender has offered one. However in future a mortgage holiday could harm your credit status.  Any extension to a mortgage break could be seen as a sign the borrower is struggling.  This in turn could harm any future chance of obtaining credit or a loan. Lenders will deem a mortgage break as a sign you could not keep up with repayments. Deferring mortgage payments even due to issues like recent events could be detrimental to your financial status. No decision has yet been made on whether payment breaks will be reflected on your credit reference if used in the future again. Present mortgage holiday breaks do not affect your credit rating.