Never before have we seen such a constrained market – not even during the early 1990s. Lenders are swiftly changing rates and removing or pulling deals at very short notice, so property buyers have only a very slim window in which to secure the best deals.
There is a high demand but limited supply for property in the Chiswick area. Despite what the papers say, good flats and houses are still selling, as people need homes not just sound investments. This is keeping the market buoyant though speed is of the essence.
Lenders that rely on ‘securitisation’ have almost disappeared within the last six months. These are lenders such as Northern Rock, whose assets and fund-raising were based on riskier lending criteria. Balance sheet lenders like Nationwide for example, lend against customer savings and are not at risk, so still have the funding and the lower rates.
However, they are under considerable pressure to take up the slack and this has put a tremendous strain on their resources. As a result their previous high service standards have slipped, with some taking six weeks to issue an offer.
Fewer mortgages and less time to act
In addition these lenders have become increasingly strict if someone has adverse credit or cannot prove their income. They are also asking for greater deposits as 100% mortgages are no longer available. For those that do manage the deposit, they can only borrow up to four times their salary with certain lenders.
However as a broker I can find buyers the best possible deals for their circumstances, and as we have a very good relationship with the lenders, we can get lenders to be flexible with their criteria and even negotiate larger loans in some situations.
A good professional mortgage adviser, gets the process moving and can be far more persuasive than an individual approaching a lender directly. We are at the hub of the transaction and we keep the deal together.
We provide a comfort blanket to both the lender and the client that they are in safe hands. This is evidenced by the fact that the firm processed over £1bn mortgage products last year.
Hayley Buck is an independent mortgage adviser.
