Accord Mortgages is stating that it expects a major drop in the number of standard mortgage loans across the sector during 2021, due to the economic effects of COVID-19.
The Intermediary Distribution Head at Accord, Jeremy Duncombe, said during an interview with FT Adviser that the number of people seeking what he referred to as “vanilla” loans would be much lower than normal in the upcoming year. He went on to add that the pandemic had impacted people across the board, including those who would have been considered to be in secure jobs.
Duncombe concluded by saying that, while many employees had lost jobs due to the virus, freelancers had also experienced dramatic drops in their income because of it.
The Wellgate Money and Adverse Money director Michelle Leyland agreed with this assessment, stating that potential borrowers would have more complicated credit situations than before the pandemic hit.
However, the situation is not as gloomy as it may first appear, with Bluestone Mortgages having pointed out last autumn that there is likely to be a rise in requests for specialist mortgage loans this year. This has been backed by Duncombe, who suggested that there was a strong chance of mortgage products with higher loan-to-value (LTV) being in demand among customers during 2021:
“I’d like to think we’ll see more lenders joining us with higher LTV products offering increased choice to the market.”
The CeMAP course that trains mortgage advisors prepares them to seek out specialist products that suit clients with complex financial needs.