UK Mortgage market goes into lockdown

real estate


Financial Markets – UK Mortgage market goes into lockdown


UK Mortgage market goes into lockdown

Financial Markets

Rents and asking prices across the UK are falling and you may be tempted to move on the lower markets to take out a mortgage, something you may find a lot more difficult than you thought. Nationwide, one of the UK’s biggest lenders, effectively pulled out of all new deals.

Other lenders appear to also be following the same path as the home mortgage market goes into effective lockdown amid the coronavirus which has brought the global economy crashing down.

Nationwide will now only offer home loans to those with 25% existing home equity or more.

It rules out first-time borrowers or existing homeowners with little equity in their home.

Nationwide said the change will not impact existing applications.

Nationwide added that the change will allow them to: “focus on supporting existing mortgage members, while continuing to process ongoing applications”, it said.

Existing mortgage customers will still be offered mortgage deals of up to 95% loan to value (LTV), it added.

Other lenders that have taken similar action include Santander and Skipton Building Society but many have gone further, by reducing the loan-to-value ratio to 60%.

That means borrowers will need a 40% deposit or equity in their home to be able to get a mortgage.

Lenders that have done this include: Barclays, Halifax, Virgin Money and The Family Building Society, while the Coventry Building Society has cut its LTV ratio to 65%.


Since you’re here …

… we have a small favour to ask. More people are reading Al-Sahawat Times than ever but advertising revenues across the global media industry are falling fast. And unlike many news organisations, we haven’t put up a total paywall. We want to keep our journalism as open as we can. So you can see why we need to ask for your help. Al-Sahawat Times’ independent, investigative journalism takes a lot of time, money and hard work to produce. But we do it because we believe truly ethical media and an unbias perspective really matters.

“I appreciate there not being a paywall: it is more democratic for the media to be available for all and not a commodity to be purchased by a few. I’m happy to make a contribution so others with less means still have access to information.”

If everyone who reads our reporting, who likes it, helps fund it, the future of ethical media and the futures of our staff and their families would be much more secure. For as little as £1, you can support Al-Sahawat Times and it only takes a minute. Thank you.





This story is available on:

APPLE NEWS | AL-SAHAWAT TIMES


Talk to a journalist

Email: NewsDesk@alsahawat.com

Web: alsahawat.com

Follow Al-Sahawat Times

⬆️ Follow on Instagram

⬆️ Follow on Twitter

⬆️ Follow on LinkedIn

⬆️ Follow on Facebook

⬆️ Follow on YouTube

Read it on APPLE NEWS

Read it on FLIPBOARD

About the Author

Amy Radclif
Journalist for Al-Sahawat Times