10 Jun 90% Borrowing having a shake up!
As the purchase market picks up the demand for 90% borrowing has made lenders re-evaluate their position as demand is almost impossible to keep up with, resulting in big names like Clydesdale and Virgin pulling out of the 90% market, followed swiftly by Accord and some of the smaller building societies.
Leaving only a handle of other lenders means that systems cant cope with demand and the likes of HSBC have brokers queuing up at 6am trying to secure funds, only for systems to crash resulting in brokers and their clients having to wait til the next day to see if funds become available again. This also means lenders are becoming very strict in their criteria meaning that even 1 late credit card payment within the last 24 months could warrant a client being ineligible for their product and producing a decline result and further impacting on a clients credit rating.
There are rumours that Coventry are coming back into the 90% market and we hope some of the other big names like Halifax and Nationide will follow suit as they have the systems and processes to cope with demand.
So more than ever, please contact your broker if you are thinking about buying a house and have a 10% deposit and obtain your credit file – https://www.checkmyfile.com/?tap_a=21902-1ce0c8&tap_s=159859-02d455&ref=tap
Watch this space and spare a thought for your broker, who may have been up since 6am trying to get into HSBC’s system!