Home buyers denied mortgages despite having agreements in principle.
We are emerging slowly from the covid-19 lock down status and it appears that work and retail are starting to come back, Those who were being Furloughed are also returning to full pay and the hunt for new homes is firmly back on the agenda.
All sounds very positive unless of course you are one of the thousands looking to buy with only a 10% deposit.
Before the pandemic and during brokers such as ourselves at Contractor Mortgage Services Ltd were able to secure decision in principles based on 90% borrowing but in the last few weeks lenders have withdrawn this offering.
A selection of Lenders will only lend below 80% some at 85%, 90% lending is more difficult to achieve and when a Lender does offer this due to the demand that is then placed on them they tend to shut down pretty fast. One lender advertised 90% lending on a Friday and shut the door to that business by Monday such was the demand to use them.
So the message is that if you have a 90% decision in principle in place check with your broker that this level of lending is still available, chances are that it may not be, you will then need to re think your situation.
If you want to review your options and see what you can get and if you fit the lenders criteria, then get in touch and we can have a chat.
0203 3022282