Mortgage arrangements are continuing under the second lockdown, and applications have surged recently. It is thought this is in part due to the stamp duty holiday introduced by the Chancellor Rishi Sunak, and pent up demand during the first lockdown. Decisions can be complex, particularly for those with limited knowledge of the options available to them.
However, picking the correct lender could prove the difference between securing a detached property over a semi-detached house, according to the latest study.
Research undertaken by Mortgage Broker Tools (MBT) has uncovered vast differences in loans made available to homeowners, which it published in its latest Affordability Index.
In October, MBT stated, the average maximum loan available to those moving home was £318,571.
However, the minimum loan on average was £157,000 – a staggering difference of £161,571.
And affordability is evidently key, as a mortgage is a significant loan – perhaps the biggest some will ever take out.
Tanya Toumadj, CEO at Mortgage Broker Tools, commented on the findings.
She said: “There’s a huge disparity in the amount that different lenders are prepared to lend based on the same set of customer circumstances.
“This could prove to be the difference in a home buyer being able to afford a bigger property or more desirable location.
These professionals can provide further insight into the complicated market, and additionally help people to conduct whole of market research.
For those hoping to capitalise and make savings at present, mortgage experts have advised to act quickly on the stamp duty holiday.
The Chancellor has announced the temporary stamp duty holiday will end on March 31, 2021, leaving Britons a limited time to benefit.
The rate of stamp duty is currently at zero percent for all properties which are worth £500,000 or under.