30 Skyline | Edition 6 | Autumn 2023
It feels like déjà vu to be writing again that the property finance market is in a state of organised chaos . The benign conditions we enjoyed after 2008 seem light years away and we ’ re kidding ourselves if we believe 1 % ’ ish fixed term deals will be with us again any time soon . Even if inflation ever gets down to the magic 2.5 %, that ship has sailed .
Dan Morris
Key Account Director Crystal Specialist Finance
The property finance world has simply reset itself and changed . First time buyers will be ok as they know no different , but it is certainly going to be painful for home movers as they exit their once in a lifetime fixed term deals .
The computer is increasingly saying ‘ no ’
Another thing that has changed over the last few years is working patterns . Fixed term contract working , freelancing , zero hours contracts and being self-employed are now more prevalent than they were pre the Covid pandemic .
Unfortunately , the traditional , high street lenders approach to this new breed of borrower has not kept pace . Flexible working is not for them and poses an unacceptable level of risk . So does the increasing number of borrowers , who have missed the odd credit payment here and there .
In fact , recent research revealed that just over one in two people ( 53 %) already fall into one or more lending criteria classed as ‘ non-standard ’ ( specialist ), and 1 in 4 struggle to get a mortgage .