Brokers confirm need to shop around to secure a mortgage
More than nine in ten brokers (94%) say they now need to shop around more to secure the loan size requested by their clients than they did prior to the start of the pandemic.
This is according to research by the Mortgage Market Alliance, which surveyed a group of mortgage brokers to understand how Covid-19 has impacted their ability to source mortgages for their clients.
The research found that affordability is currently the biggest challenge for nearly half of brokers (47%), with more than a third (34%) saying that LTV is their biggest challenge.
All brokers unanimously agreed that lenders are taking a more cautious approach to affordability as a result of Covid-19 and eight in ten (81%) said they are finding it harder to secure the loan size requested by their self-employed clients than they did before lockdown.
That said, 60% of brokers say they work with lenders that are able to ignore whether a client has been furloughed when it comes to affordability if they have returned to work at full salary.
Alex Hammond, director of the Mortgage Market Alliance, said: “The mortgage market, as with most elements of our lives, has changed almost beyond recognition since the start of the pandemic, but headlines heralding a squeeze on mortgage availability tell only half the story. The overall number of available products has certainly fallen, particularly at higher LTVs, and lenders are looking at applications with more scrutiny, but there continue to be opportunity for customers to secure the loan sizes they need. It’s just more important than ever to shop around.
“For brokers this means working with a more diverse group of lenders and for customers this means seeking professional advice from a broker who is able to research the whole market, as this will give them a much better chance of securing the mortgage that they need to make the next step in their lives.”
For more information, including how to join the MMA, please visit: www.mortgagealliance.org.uk