Another week and the return of the property market has been greeted, not just by the return of the sun, but the return of a good few lenders and mortgage products.
There are green shoots all over the place now if you look carefully, and whilst nobody wants to get carried away, it’s nice to have some positivity to grab hold of once more.
This week has seen lenders such as Accord, Virgin Money and Clydesdale Bank come back into 90% LTV lending once more, joining stalwarts HSBC who have been consistent throughout the recent weeks. Accord have also committed to retaining their income multiples at 5 times income for those earning over £60,000 which is good to hear.
HSBC have also reduced their rates as well as have a number of other lenders who are feeling more comfortable in taking in more new business.
Specialist lenders offering Buy-to-Lets have also returned to the fray, with Kent Reliance amongst others now back at their standard 75% LTV with some decent product options. It is really important to see lenders like this back again and we have had more than our fair share of enquiries from landlords looking to take advantage of current conditions and low rates.
Big lenders like Barclays, Santander and Halifax are once again restarting their valuations which is a real tonic, starting on the unenviable task of getting through the backlog and booking in new valuations once more.
Whilst everyone is following the new social distancing safety guidelines carefully, this will really help to get things moving again.
Looking at some of the stats we have seen demand for property searches is up, those who stalled their transactions are still keen to proceed and there is no evidence of much price cutting going on. It is all early days, but it’s not just the sun making people smile once more.
In terms of mortgage rates, for standard residential mortgages, borrowers can obtain 2-year fixes at 1.19%, (3.18% APRC) and 5-year fixes from 1.41%, (2.66% APRC) whilst variable tracker rates are around from 1.24%, (3.59% APRC).
Those looking at Buy-To-Let can now obtain products from 1.19%, (4.55% APRC) for a 2-year fixed or 5-year fixes are available from 1.62% (3.77% APRC).