31 July 2020

Press coverage 

Why are some lenders making it harder for furloughed workers to get a mortgage? Mark Harris of SPF Private Clients, said lenders were concerned that many furloughed workers would not have jobs to come back to. ‘Some incomes will, in the short term at least, be affected.’ He added: ‘Lenders are exercising caution and ensuring we don’t see a return to irresponsible lending seen before the last financial crisis.’ The Times, 24 July 2020

Landlords who took a mortgage payment deferral to help out tenants struggling to pay their rent have had loan applications rejected themselves. While taking a mortgage holiday does not leave a negative mark on the borrower’s credit file, Mark Harris of SPF Private Clients, said banks could easily find out. ‘While the payment deferrals do not affect the applicant’s credit score, lenders can ask the question and may pick up the information from bank statements, which is why ongoing and future mortgage applications may be affected,’ he said. The Daily Telegraph, 19 July 2020

Buyers Mike and Frances Tomkins have taken advantage of the new stamp duty holiday, finding themselves saving £15,000 on their new property in New Eltham, south-east London. The couple, who arranged their mortgage through SPF Private Clients, will now pay only £3,750 in stamp duty rather than the original £18,750 they’d expected to be liable for on their £575,000 house. The Evening Standard, 15 July 2020

Nationwide Building Society is once again offering 90 per cent LTV mortgages to borrowers. Mark Harris of SPF Private Clients said: ‘Nationwide was one of the few lenders which was really active at 90 per cent LTV and apart from HSBC, none of the big high-street names have had the same appetite. The other big lenders still have resource issues so it doesn’t look as though Halifax or Barclays are quite there yet when it comes to a 90 per cent offering. Coventry Building Society is returning to the market but if Santander or say NatWest were to join Nationwide and HSBC, this would put pressure on the other big lenders to offer 90 per cent LTV while ironically easing the pressure on them once they do.’ This is Money, 13 July 2020

Lenders are removing or lowering early repayment charges making their products more flexible for borrowers who wish to switch deals before the end of the term. Others are offering split loan mortgages so you can have some of the mortgage on repayment and the rest on interest only. ‘This is designed to fit in around times when you may need more flexibility,’ said Mark Harris of SPF Private Clients. The Sunday Times, 12 July 2020

First-time buyers have been disproportionately hit by the pandemic and new lending restrictions. But Mark Harris of SPF Private Clients said it was not just first-time buyers who had been impacted as many lenders had tightened their policy on variable incomes, discounting bonuses and freelance income. The Sunday Telegraph, 5 July 2020

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