They say that life is what happens when you’re busy making other plans. Well, none of us could have prepared for the diversion our lives have taken since March this year, and planning for anything, even in the near future, continues to feel like a fool’s errand.
When lockdown was imposed, many aspects of our lives were put on hold, but I’m sure none of us envisioned that six months later things would scarcely have moved on. Many have yet to return to the office, networking and events have been further delayed or moved to virtual ‘gatherings’, and the likelihood of life pre-pandemic returning before the year is out is looking increasingly slim.
For mortgage brokers, whose clients often expect them to predict the future, the lack of certainty makes their job harder than ever, particularly for those with smaller deposits, typically first-time buyers. One week you’re advising of a 90 per cent deal back on the market, to the delight of clients; the next week that product range is pulled after you’ve spent days trying to secure a now non-existent deal.
But those lenders dipping a tentative toe back into the high-LTV market can’t be blamed; for once, they want competition in this space so demand can be dispersed and borrowers don’t have to be turned away when they hit max capacity.
The stamp duty cut, which has fulfilled the chancellor’s intention of getting the market moving again, still misses the mark for those with smaller budgets, with property prices hitting a 16-year high as buyers rush to beat the deadline.
But in contrast to the all-time lows when ‘the big freeze’ hit the property market earlier this year, things are now looking up for the sector and brokers are inundated with enquiries.
No doubt there are questions piling in from clients, particularly relating to high-LTV borrowing. Hopefully soon we’ll have the answers.
