A four-fold rise in mortgage products for homeowners with a 10% deposit
Since last summer there has been a four-fold increase in low-deposit mortgage products available. The low-deposit mortgage products, which offer deposits as low as 10%, will offer some relief to first-time buyers.
Last September there were only 44 mortgage products available with a 10% deposit, however, that choice has now risen to 197 products with some big lenders adding their own products in recent weeks. For those with a 15% deposit, there has also been a sharp rise with a huge choice available.
During the pandemic, lenders have been grappling with the effects of COVID-19 on their business. Staff shortages, and employees working from home, alongside the mini-property boom towards the end of the year, have meant that many were unable to process applications as fast as before.
This led to some of the biggest mortgage lenders withdrawing from the market, until now. With new systems in place, and the ability to work more efficiently from home, some have returned to the lending market with the effect being that the added competition has helped push costs down.
Another ray of hope for mortgage lenders, which then passes down to homeowners, is that at the end of December only 130,000 mortgage payment holidays were still in place compared to 1.8 million during the peak of lockdown in June. With mortgages being paid again, mortgage lenders have started looking at new products and re-entered the market to make it more competitive.
And with the Stamp Duty Holiday due to be debated in the House of Commons this week, now is the perfect time to talk to us to see what our financial advisors can do for you…