First time buyer – Mortgage advice

September 10, 2020

If you’ve been on the lookout for a first-time mortgage, or indeed keep an eye on financial news, you may have spotted that *some* lenders have withdrawn 90% LTV mortgages.

However, this is not a negative reflection on the economy, simply a response to the unprecedented and overwhelming demand these particular lenders have experienced in recent months.

HSBC have this week reported that it had to introduce daily limits and a reduction of “first time buyer" products, citing ‘overwhelming demand’ as their reasoning behind this decision.

Much of this is likely a result of the pent-up demand between March and May where with a number of staff on furlough and unable to function ‘as normal’, lenders were unable to keep up with enquiries, combined with the unprecedented interest with regards to the stamp duty holiday.

“From a mortgage perspective, lenders are very much open for business. So much so in fact that they are having to change their rate propositions regularly to manage their business levels and service times. With interest rates being at a historic low and the temporary stamp duty concessions, now remains a unique and attractive time to explore mortgage options. Having said this, it must also be said that it is proving difficult to secure a mortgage with anything less than a 15% deposit as lenders look to manage risk in these unprecedented times. If you have a 15% deposit available or can make use of one of the schemes designed to help you get on the ladder there is no reason to not explore your mortgage options." – Mackenzie Smith’s partnership financial advisor.

Ultimately, we’re still assisting first time buyers and those requiring a higher loan-to-value mortgage on a daily basis. However, it may signal a need for impartial financial advice in order to access the best, and most appropriate products on the market.

If you’re looking for a mortgage to suit your needs, we’d be very happy to put you in touch with one of our partners who can offer an informal, over the phone chat to discuss your needs and requirements.

If you’d like us to help, simply contact your local branch and we can pass you on to a trusted advisor.

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