Barclays just rang and told me all new mortgages require 40% deposits now

lalna

They also said other banks are likely to follow suit as banks prepare to protect themselves from a massive fall in the property market.

JessJ23425

Just read an article on it, looks like it's specifically to limit business while they deal with the mass contact from customers about everything else that's going on, nothing stated that it's due to an expected fall in the property market.

It's possible/probable they will all come back after lockdowns in UK and India are over?

Source
https://www.mortgagestrategy.co.uk/news/barclays-withdraws-two-thirds-of-mortgage-deals/

lalna

JessJ23425 said:

Just read an article on it, looks like it's specifically to limit business while they deal with the mass contact from customers about everything else that's going on, nothing stated that it's due to an expected fall in the property market.

It's possible/probable they will all come back after lockdowns in UK and India are over?

The mortgage adviser told me specifically they had just had a emergency conference call and the reason given was for property price uncertainty.

AdrianC

lalna said:

The mortgage adviser told me specifically they had just had a emergency conference call and the reason given was for property price uncertainty.

Yep, max 60% LtV would certainly be a quick way of protecting that.

FtbDreaming

Oh dear... this is worrying. Im assuming those of us that already have a mortgage offer in hand wont be getting the terms changed? 

Im just keeping everything crossed that my purchase completes in time before the offer expires. 

Cvid96LH

I have an offer for a 95% LTV from another bank, but I’ve recently asked them to reissue the offer to reduce the borrowing due to a newly negotiated purchase price. 

Can they now refuse to offer me the mortgage? And if they refuse the new one, can I fall back on the old offer?

justwow

Just got the same sort of call from Barclays too, i was wondering if it was a hoax call, so came here to check, looks like very tough times coming ahead.

bigmortgage

Banks don't have crystal balls. They are rationing their resources by reducing demand (especially as ultimately all new mortgage offers may well expire before properties complete - so it's wasted time for everyone) and they are limiting risk in the short term to see where we are when the dust settles.

It is certainly not an indication of massive falls to come in the property market.

Crashy_Time

Sensible move for the banks, too late to protect people who have too much debt and possible lay off looming though.

fullofcold

I actually wonder if it's partially due to the valuation problem at the moment. They are far more likely to accept a desktop or drive by if it's a lower ltv

pinkteapot

JessJ23425 said:

Just read an article on it, looks like it's specifically to limit business while they deal with the mass contact from customers about everything else that's going on, nothing stated that it's due to an expected fall in the property market.

It's possible/probable they will all come back after lockdowns in UK and India are over?

Source
https://www.mortgagestrategy.co.uk/news/barclays-withdraws-two-thirds-of-mortgage-deals/

Before everyone panics too much, the article linked to above says Barclays have withdrawn most of their products from the market because their underwriting is done at offices in India which have had to close due the nationwide full lockdown there. That means Barclays simply have little to no capacity to process applications right now, so they've pulled most products so they only get a few applications. They say they'll be relaunching their products as soon as they can. 

I'm sure we will see some tightening of the mortgage market due to the impact on the housing market, but I think the story is being slightly misrepresented on this thread...