BM Solutions and OneSavings Bank agreed the upheaval generated from the coronavirus crisis would mean lenders needed to gather more information and treat cases differently to normal.
Speaking on the market discussion, Phil Rickards, head of BM Solutions, (pictured) noted there could be “a bit of short-term challenge on criteria”.
“Clearly, current trading conditions are a challenge, we’re already seeing some tweaking of criteria around the fringes,” he said.
“Lenders have to be cautious, we have to lend prudently, so naturally we’re going to have an eye on events in the pandemic.
“Brokers will need to be patient through this time as they will see lenders treating scenarios differently. Every lender has different policies and views on things.”
Rickards noted that once the nation has truly emerged from the pandemic and lockdown truly and its impact on the economy and unemployment, lenders would be able to have greater consistency.
And he highlighted that rates were unlikely to rise and there was not the same pressure on loan to values as in the residential market
“I think there will be a difficult 12 months ahead but I think we’ll come through this, lenders want to lend,” he added.
Criteria is set
OneSavings Bank group sales director Adrian Moloney agreed with Rickards, noting there was liquidity in the market and that “banks are well capitalised and we’re all keen to lend”.
“Criteria is probably set for a period of time,” he continued.
“I do think we have to be patient. We do have to work through this period where we have payment deferrals to work through, where we’re looking to see what happens with UK plc in terms of jobs, but I think all things considered lenders have got back to this market well and we’re in a good place for the short to medium term.”
The lenders also discussed key issues in the market including the treatment of borrowers who have taken a payment holiday, the overall future for the buy-to-let market and how lenders will adapt to working with brokers.
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