Last week, online property portal Rightmove reported that new data shows online house searches have returned to pre-Covid-19 levels.
Specialist mortgage software firm Twenty7Tec said it saw searches for new mortgages overtaking remortgages for the first time since lockdown began.
It is an encouraging sign that online house searches have been so high during such a time of uncertainty.
While no one is expecting things to get back to full strength for some time, lockdown appears to have done little to dampen buyers’ eagerness to continue with their housing plans.
This will eventually help fuel a return to a vibrant mortgage market sometime in the future. It is essential for those needing higher loan to value (LTV) mortgages, such as first-time buyers.
High LTV mortgages
We are starting to see the return of 90% loan to value mortgages (where you need a deposit of 10%). These are essential because a buoyant first-time buyers’ market largely governs the health of the rest of the property market.
It is understandable that the majority of lenders decided to pause these products during the early days of lockdown. With valuations put on hold and wider uncertainty, lenders had to use caution and this vigilant approach will continue as they assess what impact the lockdown has had.
Many buyers will now be in a very different financial position and will also need time to reassess the situation. A number of lenders are reintroducing high LTV mortgages, which appears to be a positive step.
As ever, if you are searching for a new mortgage, regardless of your available deposit, it is worth taking advice.
While mortgage comparison sites seem like a good way to find a lot of deals, they are limited in their offering and do not cover the criteria that may need to be considered.
Also, now more than ever is the time to seek advice due to the criteria changes across the market.
Our advisers have many years of house-buying and mortgage knowledge that they can share with you. This is essential whether you are a first-time buyer, new to moving up the property ladder or looking to remortgage in order to secure a better deal.