We're delighted to offer our clients exclusive access to some preferential mortgage rates via our mortgage brokerage, Connaught Private Finance.
The last few weeks have seen many changes and we thought it might be useful to give you a quick overview of the current market through Connaught Private Finance.
When the lock down started many banks withdrew lending altogether, this was mainly due to the number of requests for mortgage holidays, as the processing teams needed to focus on existing customers instead of new business.
The other challenge was the valuations, as many lenders were unable to send out surveyors to properties to do an inspection. The good news is, lenders are now finding a way and many of them seem to be falling in line, especially around the 60% loan to value mark (meaning equity or a deposit of 40%) by doing desktop valuations. These are carried out on an estimated valuation, which takes into account previous sales in the area of similar properties which would give the value.
As a result lenders who had pulled out of the market have now returned, albeit many at 60% loan to value, but it is encouraging to see competition. There are others however that are offering higher loan to values with desktop valuations.
-- Read on and scroll to the bottom for our exclusive Connaught Private Finance money saving deals --
Here is our essential round up of key lender offerings in the mortgage market:
- Fixed rates from 1.12%
- Desktop valuations up to 80% within the M25 but values limited to £1m
- Desktop valuations up to 80% outside the M25 but values limited to £750,000
- Applications in excess of these values accepted but won’t be offered until a survey can be carried out
- If desktop isn’t successful then case will still be processed but the offer won’t be issued until a survey can be carried out
- Fixed rates from 1.34%
- Max loan now £500,000 up from £350,000 as of today until further notice for both residential and buy-to-let
- Maximum loan to value 75%
- Maximum loan to value for BTL 60%
- Interest only available up to 60%
- Equity for Interest only = £300,000 (Greater London/Outer Metropolitan area), £250,000 outer south east, £200,000 all other UK regions
- Desktop valuations where possible, if not possible then application will be placed on hold until one can be
Some of the other key points of interest include:
Many homeowners have applied for mortgage holidays. If you have taken one of these and your rate is coming to an end, you should still be eligible for a rate switch with your lender and secure the new rate. We would advise you speak with one of the Connaught Private Finance's advisers, who can review your situation to ensure you take the right product for you.
As an example, some lenders will offer non redemption trackers. If you were looking to sell and move, it would make sense to move your mortgage onto a flexible product, to avoid falling onto their standard variable rate, which is much higher.
Changes to income that lenders will accept
If you are employed and have been furloughed then this will impact your borrowing ability. Many lenders have restricted applications for employed clients to 80%, which would reflect the amount the government have guaranteed.
Some lenders however, have restricted lending further, to 60%. For those of you who have bonuses and commissions that need to be taken into account, it is crucial you speak with one of the Connaught Private Finance advisers. This is because they are up-to-date with which lenders are taking these into account.
Between now and the end of this year, many homeowners will have their current initial mortgage rate come to end. Therefore, it would be a good time to review any mortgages you have and secure the best rates through one of the advisers at Connaught Private Finance.
Mortgages of £1m - £10m+
Lending in this area remains strong, many of the lenders are working off of desktop valuations where they can. Of course, many of the high street banks are a little more restricted, but that is expected to relax in the coming weeks. Some of the private banks are also managing to get surveyors out, to ensure transactions can proceed.
Below are comparables of some of the current leading products, against the standard variable rate:
Residential Mortgage Lender compared to Connaught Private Finance
|Halifax||Connaught Private Finance|
|Term||Remaining 20 years
Capital and interest
2 year fixed rate at 1.12%
(Standard variable rate at 4.24%)
Buy-To-Let Mortgage Lender compared to Connaught Private Finance
|Birmingham Midshires||Connaught Private Finance|
|Term||Remaining 20 years
2 year fixed rate at 1.19%
(Standard variable rate at 4.44%)