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Lenders Are Playing Safe: Less Mortgage Deals

View profile for Bakshi Dhanda
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Lenders Are Playing Safe: Less Mortgage Deals

It seems that lenders are being far stricter about who they lend to amid fears of defaults.

In March of this year, there were 779 mortgage deals offering 90% Loan to Value (LTV).

For first time buyers, it was a great market.

Now, there are only 60.

Due to Coronavirus, low-deposit mortgage deals that were previously available have suddenly disappeared from the market.

Borrowers that were able to offer 10% of the value of a home as a deposit, had the choice of 779 deals at the start of March. 

Just six months later, the market has changed entirely. There are clearly fears of defaults at the moment, and with large lenders having already said they would not currently consider applications from people on furlough and who did not have a return to work date, the news is understandably frustrating for buyers.