The mortgage market opens up

The resumption of housing market activity has transformed the lending landscape, with banks now able to begin physical inspections that will allow them to clear a backlog of mortgage applications.

Accord were the first lender to say physical valuations would resume, followed swiftly by Nationwide, Halifx, HSBC and Santander. This comes as a broad range of banks increased their maximum loan sizes, loan-to-value ratios, and property values they are willing to lend to.

For borrowers, this widens the options available. Those hoping for quick decisions were previously limited to lenders that would accept remote and desktop valuations.

In late March, lenders significantly cut their product offering to stem the flow of business amid a clamour for mortgage holidays and tracker mortgages. In the past fortnight, product availability has started to creep up again, and the number of products available now stands about 45% lower than the pre-crisis peak.

ESIS volumes – a proxy for mortgage market activity – climbed 8.4% during the week ending May 17th and have climbed 12.4% since the lowest point, according to lending technology company Mortgage Brain.

Whether you'd like to reassess your options, or just have a conversation with an informed advisor to better understand what these recent developments mean for you, please get in touch. You can email us at our dedicated email address support@knightfrankfinance.com