Homebuyers look to stretch mortgage terms to keep payments low

People are looking to stretch their mortgage term to keep their payments as low as possible, Knowledge Bank data indicates.

Brokers are mainly searching for ‘Maximum Age at End of Term’ on behalf of homeowners, as people continue to struggle with the effects of the coronavirus pandemic.

Matthew Corker, lender relationship manager at Knowledge Bank, said: “The bottom line here is that people are desperately looking to get onto the property ladder.

“While there is much news about lenders returning to the market and introducing new products, we are already seeing signs that some products may be pulled in light of the second national lockdown as lender appetite for risk is reduced.

“The unknown impact of a second national lockdown on employment and the wider economy is causing panic in the housing market and this is putting buyers under an increasing amount of stress.”
Regarding buy-to-let, brokers are predominantly searching for products for first-time landlords, followed by lending to limited companies and requirements to be a homeowner.