Lenders U-turn on mortgages
Mortgage companies have U-turned on their decision to pull riskier loans after deciding that withdrawing them would hit their balance sheets. The number of mortgage products halved from 5,239 on March 11 to 2,768 today according to Moneyfacts, the data analysts. But some lenders who said that they would only consider applications from people with deposits of at least 40% are now reconsidering their stance. Halifax is now offering mortgages at 80% LTV, while Barclays and Skipton are offering 75% LTV deals. Nationwide brought back tracker mortgages at 95% (LTV) last month and this week offered interest-only remortgages for the first time in eight years, although only up to a maximum of 60% LTV. “Other lenders who withdrew mortgage deals have signalled that they are coming back before lockdown finishes,” says Chris Sykes from the mortgage broker Private Finance. He believes that the volume of people who were searching for cheaper deals as they worried a bout money during the lockdown took banks by surprise.