Mortgage Monitor: Lenders reintroduce products as normality starts to return

Mortgage lenders are reintroducing products withdrawn during the Covid-19 crisis following the resumption of property market activity a week ago.

Clydesdale this week said it would resume residential mortgage lending at 90% loan-to-value (LTV), and buy-to-let lending at 80% LTV. The lender said it will also withdraw the temporary limits on loan sizes and property values that it had put in place during the outbreak.

Santander plans to increase its maximum loan size from £500,000 to £1 million, and HSBC will today reduce rates for its two, three and five year fixed-rate products.

The expansion of services comes after the government relaxed restrictions on property transactions on May 13th, allowing more valuers to resume visiting properties so banks can begin clearing a backlog of mortgage applications.

“It’s clear that banks are eager to both clear the backlog and re-establish a pipeline of business after some went as far as closing their doors during the first phase of the outbreak,” said Hina Bhudia, partner at Knight Frank Finance. “For borrowers, this means more choice and better deals.”

There are tentative signs of a recovery underway as property markets reopen. During the week ending 17 May, the number of enquiries from the internet and social media was the highest it has been in a year and 8% above the previous peak in early February.

The data covers listings portals such as Rightmove and OnTheMarket, all social media channels, emails sent via the Knight Frank website and enquiries made via its chat function. It does not include any contact with individual Knight Frank offices.

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