"In a very true sense, these product numbers need to be looked at in isolation, because they differ so greatly to the overwhelming trend of the last 12 months"
Its figures show that product availability has dropped sharply in recent weeks, with two-thirds of products being withdrawn for those borrowers who have a 25% deposit. The market has seen a similar fall in product numbers for those with a 5% deposit, albeit slightly less in percentage terms.
AmTrust said it hoped lenders would continue to see the value in risk-mitigation products such as private mortgage insurance which would give lenders – particularly those offering higher-LTV products – greater peace of mind about their ability to deal with any payment issues in the future.
Patrick Bamford, business development director at AmTrust, commented: “In a very true sense, these product numbers need to be looked at in isolation, because they differ so greatly to the overwhelming trend of the last 12 months, which has seen a concerted increase in product availability.
“Now, we are in a very different environment. The Covid-19 pandemic hit fast, and it’s completely understandable that lenders have had to react quickly, and many hundreds of products have been withdrawn, for borrowers fortunate to have a 25% deposit or those with a 5% deposit.
“The slight saving grace for low-deposit borrowers is that their product choice has not dipped – in percentage terms – by quite the same amount, however we’re still at an early stage and lenders will no doubt continue to react as the days pass and we get a greater understanding of how this crisis will play out.
“However, it’s still important to recognise for both first-time buyers and those seeking to remortgage, that the mortgage market remains open for business, products are still available, and especially where lenders can utilise automated, or desktop, valuations – rather than relying on physical inspections – cases are progressing to offer.
“The lending community has needed to act fast – especially given the overwhelming demand for mortgage payment holidays – but it is testament to its resilience that first-time buyers can still access finance and, where the conditions allow, can still see their cases moving forward.
“The industry should be applauded for this, however we must also recognise that market conditions might well get worse, before they get better.”
