Are adverse lenders pulling out/tightening up

obc18

We were due to apply for our H2B + mortgage via an adverse lender this summer, obviously everything is on hold now as the site has closed. Just wondered how the land lies with the adverse market at the moment, I’ve heard of some high street lenders pulling offers so just panicking that the specialist market are also pulling the shutters down on us too. Any info appreciated, thanks!

JustJane101

Depends who you were planning on using I guess. I'm anxiously waiting a response from Kensington. I've already applied and using Forces Help to Buy at 95% LTV. Both of which they have pulled!

their wording on the help to buy products:

THIS PRODUCT IS NOT AVAILABLE: Due to the current climate, we are currently unable to accept Help to Buy.

Thrugelmir

Lenders have more immediate priorities such as mortgage payment holidays to process. Staff levels are going to be impacted as well by current events. We may well be looking at an extended period of shutdown. Absolutely no point in concerning yourself. Normality will return. When, no one can say. 

ACG

High street lenders are not pulling mortgage offers as far as I am aware - there may be some exceptions, if you worked for Gordon Ramsey for example and he has just made loads of people redundant. 

But yes specialist lenders are pulling out (a la Vida) and some are pulling back (Kensington, TML). It is not surprising Kensington have pulled back, they were doing 90-95% LTV and they were the only specialist lender in that part of the market, the others however are a bit more of a surprise. Other lenders are currently saying Business as usual, but that may change in light of TML and Vida' stance. 

See how things play out, we could be back to normal by summer.

JustJane101

ACG said:

High street lenders are not pulling mortgage offers as far as I am aware - there may be some exceptions, if you worked for Gordon Ramsey for example and he has just made loads of people redundant. 

But yes specialist lenders are pulling out (a la Vida) and some are pulling back (Kensington, TML). It is not surprising Kensington have pulled back, they were doing 90-95% LTV and they were the only specialist lender in that part of the market, the others however are a bit more of a surprise. Other lenders are currently saying Business as usual, but that may change in light of TML and Vida' stance. 

See how things play out, we could be back to normal by summer.

What does that mean for those of us with adverse do you reckon though? I imagine life is going to get harder for us trying to secure a mortgage.

ACG

If your application is already in or offered everything should be treated as before the products were pulled. 
If your application is not already in, yes there is probably some tightening up. I think we just need to give it 2-3 months and let the dust settle to see where we are. 

obc18

ACG said:

High street lenders are not pulling mortgage offers as far as I am aware - there may be some exceptions, if you worked for Gordon Ramsey for example and he has just made loads of people redundant. 

But yes specialist lenders are pulling out (a la Vida) and some are pulling back (Kensington, TML). It is not surprising Kensington have pulled back, they were doing 90-95% LTV and they were the only specialist lender in that part of the market, the others however are a bit more of a surprise. Other lenders are currently saying Business as usual, but that may change in light of TML and Vida' stance. 

See how things play out, we could be back to normal by summer.

Thank you, hopefully when normality resumes in the world we can still be placed with an adverse lender without too much difficulty later on in the year. I think our broker was hoping Precise may have been good for us. Not sure if they've made any changes yet?

Thrugelmir said:

Lenders have more immediate priorities such as mortgage payment holidays to process. Staff levels are going to be impacted as well by current events. We may well be looking at an extended period of shutdown. Absolutely no point in concerning yourself. Normality will return. When, no one can say. 

Not expecting anyone to be able to predict, but just looking for any kind of information, as I'm sure any buyer will be right now.

JustJane101 said:

ACG said:

High street lenders are not pulling mortgage offers as far as I am aware - there may be some exceptions, if you worked for Gordon Ramsey for example and he has just made loads of people redundant. 

But yes specialist lenders are pulling out (a la Vida) and some are pulling back (Kensington, TML). It is not surprising Kensington have pulled back, they were doing 90-95% LTV and they were the only specialist lender in that part of the market, the others however are a bit more of a surprise. Other lenders are currently saying Business as usual, but that may change in light of TML and Vida' stance. 

See how things play out, we could be back to normal by summer.

What does that mean for those of us with adverse do you reckon though? I imagine life is going to get harder for us trying to secure a mortgage.

I think we just have to sit tight and hope for the best don't we. As ACG says we may all be back to normal in a few months, fingers crossed there isn't too much that will have changed in terms of criteria etc. How far along the process are you?

JustJane101

I think we just have to sit tight and hope for the best don't we. As ACG says we may all be back to normal in a few months, fingers crossed there isn't too much that will have changed in terms of criteria etc. How far along the process are you?

Precise appear to have put on hold all mortgage applications prior to valuation stage, as has Kensington.

I've had my valuation done on 10/03. I've had a few issues with my application so it's taken a long time. BUT their website does say they will continue any applications past the valuation stage, so there is hope for me.

I really do think the market and things will stabalise, but I don't know how long that will take. I live in hope that if things go wrong here for me, and also for those who haven't applied or got to valuation yet that specialist lenders do not pull out of the market completely. Kensington have offered a lifeline for me that I never thought I would have had, and I'm sure many others feel the same with specialist lenders.

Have you applied yet?

Thrugelmir

There'll always be mortgage providers that cover all the different types of borrower. From the mainstream to the highly specialist. 
After the GFC of 2006-2008 number of lenders in the market contracted by a third. Won't be the same impact this time.