A positive move in the right direction
Since the lockdown began, we saw 90% mortgages pretty much disappear, meaning much higher deposit were required to buy a property.
There has been a lot of uncertainty in the market with lenders concerned with the economy, job losses and the possible dip in the market after the stamp duty holiday ends. Its no wonder they wanted to protect themselves.
We have seen lenders dipping their toes in and out of the 90% market for the last couple of months, but it looks as though there is now light at the end of the tunnel.
As of this week (4th Dec 2020), we have seen more major players coming back to the 90% market, albeit with extra restrictions in place with these deals. Some of the key things to look out for are as follows:
Maximum Lending - The main things to watch out for is that most will only allow up to 4.5x your income (subject to fitting their affordability calculators), with one or two going a little higher (up to 4.75%) depending on your combined earnings.
First Time Buyers Only – around half of the lenders will only offer the 90% mortgages to First Time Buyers (or at least one of the applicants being a FTB)
Houses Only – A few of these lenders will only lend on Houses (no flats) or New build properties.
Purchase or Remortgage – most of the deals are for house purchase only, with just a couple offering up to 90% for remortgages.
Medium Term Fixed Rates – The majority of the rates seem to be offered on 5-year terms with rates tending to be over 3%
It can be a bit of a minefield finding the right one in this fast ever-changing market – which is where using the services of a broker can be really worthwhile.
Call 0330 22 333 10 if you would like to know more
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE