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Lenders dipping in and out of high LTVs is the ‘new norm’ – iVENT 2020

  • 23/09/2020
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Lenders dipping in and out of high LTVs is the ‘new norm’ – iVENT 2020
Lenders coming in and out of the market, particularly at the higher loan to values (LTVs), will be part of the ‘new normal’ for the adviser community, delegates heard at the first session of the mortgage administrator iVENT 2020.


In his presentation, John Scrivens (pictured), regional intermediary relationship manager at Skipton Intermediaries, described some of the current market challenges for lenders. These include understanding how many borrowers who took payment holidays can afford to restart payments, as well as monitoring employment as the furlough scheme unwinds.

As lenders deal with some off these issues, they will continue to come and go from the market, Scrivens said.

He added: “Don’t expect this to change anytime soon. I can see this remaining the norm throughout the remainder of quarter three and well into quarter four.

“Mainly, due to the lack of lenders entering this market space. What we have seen over the last few months is lenders attempting to do so and then getting swamped with the full force of the market, especially at the higher loan to value ranges.”

However, he said there’s “no lack of demand” in the market and if economic indicators remain strong, some lenders may return to the market before the end of the year to support first-time buyers and next-time movers in the higher LTV levels.

Scrivens talked about how the past five to six months have been a challenging time for the industry as people adapt to working from home and changes in job processes.

Skipton has put in place broker webinars to help create a balance between remotely supporting brokers and having relationships.

Scrivens recommended the adviser community be prepared to “adapt and try new things”.

He encouraged the audience to consider the following questions going forward:

*What have you learnt about your way or working?

*How have your customers adapted?

*What do your customers need from you now which is different to the past?

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