This article addresses the current situation regarding the decision to leave the EU and the UK adverse credit mortgage market.
As at today’s date there is virtually no change to the lending criteria for adverse credit mortgages, one lender who offered a 90% mortgage withdrew the product, but we are not aware of any other lenders withdrawing products or tightening up lending criteria.
We have had e mails from a number of adverse credit lenders stating it is “business as usual” and that they do not expect to making any negative changes to their product range or criteria in the near future. So at present, there are still a number of adverse credit lenders who can consider a mortgage application with a 15% deposit.
Many people appear to be nervous of proceeding with a house purchase following Brexit and of course everybody will have their own view on what is right for them.
Our view is that at present there are strict rules applied on mortgage affordability and lenders will not allow people to overstretch themselves when assessing the maximum mortgage advance available, and we can usually secure a fixed rate mortgage which ensures your repayments cannot increase during the fixed rate period.
There is the possibility of a short term reduction in house prices as the impact of Brexit takes shape, but longer term it is not clear where house prices will go, but many people are feeling that if they want to purchase a house because it is right for them and their family, then as long as they are comfortable with the mortgage repayments now and in the future, taking account of other finance commitments and general living costs, then buying the house they want to make their home, is the right decision for them. Of course each person has to decide what is best for them taking account of all the factors involved.
If you would like to speak with us about the above subject or indeed any other mortgage related query, please feel free to call us.