The last 18 months have seen a four-fold increase in lenders offering rates for 95 per cent loan-to-value through the Help to Buy scheme introduced by the government, meaning that they now make up around one third of all mortgage products on the market.
Following the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review (MMR) in April 2014, many lenders further tightened their lending criteria and affordability assessments. Fearing reprisal from the Financial Conduct Authority (FCA), many reduced the maximum loan-to-value size, offering mortgages only to those with a more sizeable deposit.
Mortgage insurer Genworth revealed that in terms of physical numbers, there were just 43 products available at 95 per cent in October of 2013 – a number that has now risen to 182, which is the most seen since the recession. Lenders seem more comfortable with accepting lower deposits with the continued record low rates.
As a mortgage advisor, you will be committed to advising on products from within your employer’s product range. Having undertaken your CeMAP training and gained a pass in the final accreditation exam, you will be qualified to assess the needs of your customers and complete a full affordability assessment. Your employer’s participation in the Government’s Help to Buy scheme will determine if there are 95 per cent products you are able to recommend.
Of course, you will recommend the package most appropriate to them and ensure you are open, transparent and clear in your recommendation.