Mortgage prisoners to be freed in 2013
The broker says the reason behind this is that lenders such as Clydesdale Bank and Kent Reliance are coming up with more flexible underwriting solutions, helping those with an unusual or difficult financial position.
Springtide Capital’s recent research has shown that many people in the UK have been unable to move home since the credit crisis of 2007 as they have been refused finance on the grounds that they are self employed, have loan-to-value restrictions, credit impairment problems or employment changes.
Commenting Henry Knight, managing director of Springtide Capital, said: “The Funding for Lending scheme will really begin to manifest itself as the year goes on.
“Mainstream lenders will be competing to lower their rates and smaller lenders will be taking advantage of this gap in the market by coming up with more innovative products for bespoke requirements.
“This should see many more so-called ‘mortgage prisoners’ finally able to obtain a suitable product to fund their move.
“Consequently we should expect activity to gradually pick up across the UK and we are looking forward to teaming up with innovative lenders to find the right mortgage for all of our clients this year.”