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‘Limited mortgages have become like game of raffle’ – Star Letter 11/09/2020

  • 11/09/2020
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‘Limited mortgages have become like game of raffle’ – Star Letter 11/09/2020
Each week Mortgage Solutions and its sister title Specialist Lending Solutions select the top comments from our readers in our Star Letter section.


The first comments were a response to the article: TSB launches 90 per cent LTV mortgages for one-day only 

Stuart Phillips said: “What they are offering is a prize draw, a raffle. Like this is some silly game. 

It’s not a silly game, these are young people’s hopes. Something they have likely saved for over years, now scuppered by a virus they didn’t see coming.  

“Now reduced to a lottery.” 

He added: “Not to mention the frustration for the broker, having to tell clients they will roll the dice, creating stress and forcing hundreds of brokers to commit to work they know there is only a fractional chance of getting paid for. 

“If you haven’t got the cash or the capacity, stay out of the market until you do.” 

Aga Moczynska said: “As much as would really love to see more high loan to value (LTV) deals returning to the market, moves like this are far from desirable.  

“It’s not fair on clients or brokers. All it creates is a race for those deals creating a lot of pressure for all parties.”  

“What is the point of bringing a deal for one day only and what purpose does it serve? There are a fair amount of clients waiting for 90 per cent LTVs to become available but in many cases a broker would require a fresh set of documents before submitting the business.

“With one day’s notice on a one day deal I can only imagine what things are going to look like,” she added. 


High LTV shortage affecting all borrowers 

Replying to the article: Brokers see tough first-time buyer mortgage market unless more lenders return – analysisSox said: It’s not just firsttime buyers. A couple that have parted recently have sold but now only have a small deposit each 

I have high earning clients who have been left out of the loop because the maximum purchase price or loan size is too low for what they need, so the list goes on. 

They added: “If the first-time buyers cannot enter the market then there cannot be onward movers and eventually it will grind to a halt.  

can’t see it getting better anytime soon, unless a few of the larger banks get together and all agree to come back to market at the same time with similar placed products so they can all take a share to spread the risk.  

At the rates they are charging they must be itching to do it surely. 

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