Mortgage lenders are taking a more relaxed view of the housing market’s future and one of the largest, Nationwide, has returned to offering 90% LTV mortgages, a leading mortgage broker has claimed.
Dan Lee of Total Landlord Mortgages says over the past week or so his team have been able to get 90% LTV mortgages approved by the lender, and that other mortgage firms are following suit.
“Only a few weeks ago we had clients whose mortgages were being rejected by the lender and house sales were falling apart,” he says.
“But now we’re able to go back to them and say their mortgage application is likely to be given the green light, which will be good for the property market.”
Dan also says that this underscores the importance of brokers, which these days handle approximately 80% of all mortgage applications.
He says lenders clearly believe that the risk of a post-boom housing crash is easing off, helped by a surge in property price valuations in recent weeks.
This includes the most recent Halifax house price index, which revealed a staggering 7.3% annual increase in house prices including a leap of 1.2% last month.
“At the moment it feels like the good times of the early noughties, and it’s certainly not where I thought we would be now following two lockdowns,” adds Lee (pictured).
“And as the Covid vaccine is rolled out, and if the Chancellor modifies his plans to end the stamp duty holiday on 31st March, then this boom may continue.”