The last few years have created a situation where there are many more people who want to buy a home but have complicated financial circumstances. This has led Smart Money People to talk to mortgage advisors with the CeMAP qualification about what product areas they would like lenders to improve upon.
13% of those questioned told the survey that they think lenders need to introduce more products with criteria aimed at self-employed people. More people have opted for self-employment in the wake of the Covid-19 pandemic, but advisors indicated that people in that situation are not treated equally to the employed by major lenders. Removing restrictive criteria such as the demand for two years accounts are among the recommendations from advisors.
Help for those with credit issues
A second area that was highlighted by advisors was the need for more products that people who have issues with their credit scores can apply for. What the majority of mortgage advisors told Smart Money People was that lenders could provide more products with high loan-to-value ( LTV) as a way of supporting borrowers in that situation. However, they also suggested that lenders need to get better at sorting major credit score issues from more minor ones when considering borrowers.
More mortgage term flexibility
The last point raised was a need for borrowers to have more flexibility within the repayment terms of their mortgages. This may include being able to increase payments during the first term and more fixed-rate loans that do not have early repayment charges.