Guest Blog – Clive Packham – Sussex Independent Financial Advisors Ltd
Whilst admittedly COVID-19 and the lockdown has made moving home challenging over the past few months, we are now seeing how mortgage lenders are reacting to the new world post lockdown.
They are continually adapting their processes in this difficult time to meet customer needs. Their main goal is to be seen as a responsible lender, lending responsibly as per the FCA’s directive.
The main reason behind their criteria changes is to ensure that applicants can afford their mortgage, not just now, but in the future and that the COVID-19 lockdown hasn’t effected applicants ability to service a mortgage or have an adverse effect in the near future.
The last thing lenders want is to start repossessing clients homes due to them not being able to afford their mortgage payments, due to the impact of lockdown on their income. This has led to far more stringent measures being brought to bear at the application stage, typically asking employed applicants, “How has the COVID-19 affected your income?” “Have you had to seek assistance from any of the governments helping hand schemes?”
The problems even worst if you are self-employed with many lenders changing their criteria significantly to meet their perception of the governments directive to lend responsibly.
First-time buyers are particularly struggling as most lenders are now insisting on at least a 15% deposit. Thus putting owning their first home beyond the reach of many first time buyers with only a 10% deposit.
Whether you are looking to remortgage or purchase a new property, there has never been more benefits to seeking advice from an Independent Mortgage Adviser.
Expertise and Knowledge
Sussex IFA’s mortgage advisers are mortgage specialists that live and breathe mortgages and have relationships with all the top lenders, with valuable insights into their strict lending criteria and its ever-changing nature through these difficult times.
We also have access to all the best mortgage rates, so that you can be sure you have the best mortgage available for your individual circumstances. This is more important than ever as the market, products and lending criteria are changing daily and a good mortgage adviser will have updated information and be able to act quickly in the current circumstances.
Save time and Hassle
Our mortgage advisers have good relationships with lenders and understand where they can be flexible, or more cautious in a time where peoples circumstances have never been more complex or specialised is increasingly important. This allows them to recommend the most suitable mortgage product based on your profile.
Access to exclusive mortgage products
Our strong relationships with lenders, as well as the volume of business we give them, means we’re able to negotiate exclusive discounts including reduced fees and interest rates ensuring you get a deal which supports you now in and the future.
You get impartial advice
Unlike the banks, an independent mortgage broker will work for on your behalf from initial consultation until you take ownership of the property. Their primary interest is getting you the best mortgage available, so you can be sure you will get the best product for your needs.
Guest Blog from Clive Packham at Sussex Independent Financial Advisors Ltd