James Briggs, specialist account manager, Together
You could say the pandemic has made it more difficult for Brits to achieve their property dreams in 2022. In fact, 28% of those we surveyed* agreed with that statement.
Many people have seen their income or employment situation change or become more complicated, which may also have affected their credit or ability to save for a deposit. As for increasing house prices? Well, that goes without saying.
Your clients may be unaware of the different lenders, and different finance options
While all of these challenges could have had a negative impact on the nation’s property dreams, our survey would suggest people are feeling more determined and hopeful than ever; 95% of consumers feel driven to make their property goals happen this year, and have big plans to extend or renovate, move house or buy their first home.
Many just simply don’t know how to move those plans forward, and say accessing finance is their main barrier.
Fortunately there are brokers, like you, who can show them the way. And specialist lenders, like us, who’ll look beyond the obstacles and focus on what’s possible.
Flexible approach
At Together, we understand the challenges homebuyers are facing right now. But, more importantly, we understand that a flexible, common-sense approach to underwriting is required to overcome these challenges, alongside a wide range of products. Working with you, our intermediary partners, we can think outside the box and find ways to get your clients moving.
Many people have seen their income or employment situation change or become more complicated
According to our survey, 26% of first-time buyers weren’t able to save for a deposit during the pandemic, but that needn’t stop them moving forward.
There are options available, such as buying through the Right to Buy or Shared Ownership schemes, which could help them take their first step onto the property ladder.
Furthermore, if your clients are talking to you about taking a second mortgage on their home, to give family members the deposit they need, we may be able to help.
Refurbishment loans
Our survey also revealed that many buyers were keen to purchase a property in need of refurbishment, perhaps as a more affordable route into the home of their dreams. You could talk to these customers about short-term secured finance options such as a bridging loan, which could let them buy and complete works while living in their current property. Then, once their new house has gone up in value, they could exit onto a mortgage —potentially giving them a better loan-to-value and lower repayments as living costs continue to rise.
It’s also more than likely that many buyers in 2022 would benefit from a lender that could be flexible when assessing their income. In fact, our survey revealed income was one of the key concerns people had when applying for a mortgage.
Self-employed participants in particular believed their job status and having an irregular income would be the main reasons their application could be turned down.
A bridging loan could let them buy and complete works while living in their current property
At Together we value all forms of income and employment, and make a common-sense decision that works for each individual’s circumstances and goals. So, whether your client is self-employed (with just 12 months’ trading), has multiple income streams or has a business that is still recovering post-lockdown, we can help you make finance work for them.
Your clients may be unaware of the different lenders, and different finance options, which could help them realise their property dreams this year. Together, we could show them the way.
For professional intermediary use only.
*Results gathered from three surveys conducted by OnePoll in December 2021 on behalf of Together. Featuring 2,000 UK participants, 1,000 UK self-employed participants and 1,000 first-time buyer participants.
Original Article
