How is the valuation of properties affecting the market?

“One of the main challenges at the moment seem to surround properties down valuing and properties taking longer than usual to sell,” Owen told Mortgage Introducer. “To overcome this it’s really important to be realistic when considering anticipated values, especially with high LTVs (loan to values).

“We have seen an increase in bridging finance to help with increasing numbers of chain-breaks due to an increase in time to sell properties. After a particularly challenging year of rates increasing and lending becoming more stringent, we’re starting to see rates decreasing, which is of course really positive as lending becomes more affordable again.”

How big a problem is adverse credit?

Owen acknowledges, though, that there are higher numbers of clients who appear to be struggling in the current economy.

“In the last few months there has been a clear increase in the number of clients bearing adverse credit and, as the cost-of-living crisis is affecting a widespread amount of the population, there needs to be a focus on aiding this,” she observed, and suggested that those affected might benefit from support.

“Policymakers could provide flexibility for borrowers facing financial difficulties by implementing or extending programmes for loan modification, forbearance, or other forms of mortgage relief.”