Lenders lowering their deposit requirements making it easier to secure a mortgage
Mortgage lenders are reducing the size of the deposit applicants need to qualify for a mortgage following recent announcements that property valuers can return to work.
Nationwide for Intermediaries, Halifax, Santander and Coventry Building Society all offer 15% deposit mortgages, and TSB has lowered its deposit requirements for property purchases from 25% to 20%. HSBC is one of the few lenders providing 10% deposit mortgages.
Barclays has reinstated its buy-to-let remortgage products for those with 25% equity in their property and specialist provider InterBay Commercial has resumed lending. Accord Mortgages has lowered the size of the deposit it requires for property purchases from 25% to 15% and raised the maximum property value it will accept from £1 million to £2 million.
Aaron Strutt, product director at Trinity Financial, says: "It was not long ago the lenders were forced to either pull out of the mortgage market or force borrowers to put down much larger deposits. Some of the banks are providing up to 5.5 times salary mortgages and there are lots of remortgage rates available.
"More of the lenders are asking self-employed applicants to provide their most recent bank statements so they can assess their company trading figures. More of the providers have also stopped taking as much bonus or commission income into consideration for affordability purposes and they want to know if applicants have been furloughed."
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