Mortgage market busy and in "really good shape"

Tuesday 08 December 2020

Lenders in the UK have been tightening up their borrowing criteria in response to the financial impact of the pandemic, however local banks remain in "really good shape".

This has been attributed to Guernsey's housing buoyant market and the relatively safe position we inhabit in amidst the global crisis.

Some people have felt a knock-on effect after taking mortgage holidays, seeing their borrowing abilities negatively impacted - but this is par for the course when seeking any assistance.

“This is what happens when we offer any client any form of arrangement,” said Credit Officer at Skipton, Peter Torode, “they’ll sign an agreement letter.”

“Within that letter – not in small print – it does say the bank will not look at lending requests for 12 months after the agreement.”

Pictured: Mortgages continue to be granted to people climbing the ladder or taking their first steps on it.

In the UK, lenders have tightened up their lending criteria, with many banks increasing the deposits that people need to make. Many mortgage deals have been pulled and interest rates have fallen through the floor.

“A number of mortgage lenders, quite rightly, have tweaked their criteria,” said Director of Credit, Simon White, when comparing us to the ongoing situation in the UK.

“However, there’s a lot of lending in the mortgage market, there’s good competition in the market, generally the Guernsey and Jersey markets are in really good shape.”

Pictured top: Bonuses and overtime might not be considered during the current climate when applying for a mortgage.