Adverse lenders during Covid

obc18

So I know most lenders pulled a lot of their products when the lockdown first kicked off. Just wondering now that a few housebuilders are starting work again, have these products started to return yet? Particularly adverse lenders like Precise Aldermore Kens etc?

We are H2B so will be 5+20% deposit. Not sure if there’s anything available for us right now, or whether we should continue to sit tight until
normality resumes?

ACG

Nothing has changed yet and I dont think it will until at best a few weeks after the lockdown is lifted. The reason many lenders pulled products was the inability to do physical valuations above around 60-75% LTV. Until that is lifted, you are going to struggle because lenders can not do desktop valuations on new builds. 

You can get 75% LTV mortgages in the normal world and the adverse world. But not on flats or new builds as far as I am aware. 

Also, I think only one big developer has announced they will be starting up building but it wont be until next month? (Although I could be wrong). 

obc18

Just bumping this thread as I see some snippets in the media that some adverse lenders are bringing back 75% LTV products? Anybody seen this in the real world?

kris80

I am really struggling with this. Hopefully soon as I really need to mortgage the house that I am living in. 

ACG

There are a few lenders at 75% LTV and 2-3 at 80% LTV. 
I dont think you will see anything above 80% LTV for a while, the lenders who are currently at 80% are doing it cautiously and in quite a restricted way - self employed, expect to be grilled, bonuses/OT - you may struggle to use it, they are unlikely to be looking at adverse in the last 2-3 years and so on. 

We are some way off where we were in Feb/March time, but we are getting closer to there than we were last week or last month. It seemed to be big steps back and little steps forward. 

mclewlow1

Has anyone heard if Vida Homeloans are opening up again yet? They haven't updated their website since March and other specialist lenders have started to open up again. But we've been told Vida maybe our only hope in securing our home which we have reserved (new build) concerned if we have to wait much longer, the developers will just remarket our house understandably. We had nearly secured our mortgage through vida literally days before lockdown, instead they just pulled all applications which was a little disappointing instead of just leaving our application on hold until physical valuations could start up again. 

obc18

Our broker told us one lender had opened up a 75% LTV product (we are H2B) but the rates were around 7% which I just don't think we can do right now as our monthly payment would shoot up by a couple hundred quid. Not sure who he was referring to though?
Luckily we havent chosen a plot yet so I guess time is on our side.

ACG

I dont think Vida will be back for a month or so at best. 
They are making some noises, but I think it is just to remind people they are still around and laying some groundwork for when their account managers come back rather than a sign they will be back anytime soon. 

But who knows. 

mclewlow1

Thank you for your replies! Do you know why it seems to be taking Vida longer than anyone else to reopen? Seems strange other places including specialist mortgages are opening up again but their not. Whats more annoying is I can't seem to find any sort of update directly from them since March? I'm concerned they may not be opening up again at all at this rate!