If there’s one thing to be said for major lenders right now, it’s that they aren’t making things easy for first-time buyers. Saving huge deposits and qualifying for a mortgage in the first place is becoming increasingly difficult as banks and lenders continue to put the squeeze on first-time applicants.
Which is precisely why record numbers of first-time buyers are turning to specialist lenders in order to explore a variety of alternative financial solutions for property purchases. With limited to no help being offered on the mainstream side of the lending market, some of the UK’s smallest independent lenders are experiencing a whirlwind of activity from the first-time buyers’ market.
Homeownership is a dream shared by the vast majority of UK residents. The unfortunate truth is that, as far as mainstream lending goes, most will simply never qualify. Meeting all necessary criteria is one thing, but when it comes to saving deposits of anything from £25,000 to £100,000 in some areas, it’s an outright impossibility that just isn’t going to happen. Work out the costs of a mortgage using our UK mortgage calculator.
What makes the difference with alternative lenders is the way in which each case and application is considered uniquely. With conventional lenders, it’s a case of meeting X, Y, and Z as standards or failing to qualify. The rest of the alphabet is inconsequential. With smaller, independent lenders, financial solutions are provided in direct accordance with the personal circumstances and requirements of the borrower. tailored packages to suit their needs, terms they can meet, and a deal that works for all parties.
Suffice it to say, this isn’t the kind of flexibility any of the UK’s major lenders can come close to. Tied to all-encompassing lending standards and protocol, first-time buyers are often lucky to get so far as to secure a meeting with a mortgage manager.
From bridging loans to development finance to secured loans to second-charge mortgages, there are countless opportunities to explore for those who wouldn’t typically qualify. Some require collateral; others are more about current financial circumstances; all are fundamentally flexible. Which is precisely where the difference lies—flexibility.
But the interesting thing is that while all this is going on, the UK government continues to pledge its relentless allegiance to the UK housing market in general. Specifically, make it as easy as possible for first-time buyers to get themselves on the property ladder. Yet what’s really happening is quite the opposite—major lenders are making it more difficult by the day. Even for those looking to purchase properties as a buy-to-let investment, qualifying for the required funding has never been more of a challenge.
The advice from the experts, therefore, is simple. Alongside the usual applications and inquiries lodged with major banks and lenders, speak to a specialist independent broker to find out what else is on offer. For those who fail to qualify via the usual channels, alternative lenders can often help. And even if you do qualify for a typical loan, you could still get a better deal from an alternative lender.
For more information on alternative financial solutions for all types of property purchases, get in touch with UK Property Finance today! For example, subprime mortgages are a product that allows those who may have some credit issues or may have had no chance to build credit yet to have a chance of getting a mortgage.