Mortgages in today’s market: a broker’s advice


Whether you are a first time buyer, a landlord or a homeowner planning your next move, your future plans may depend on whether or not you can finance your purchase in today’s market.  Our Managing Director George Cobb recently interviewed Mortgage Broker Phil Robotham from Springtide Capital to explore his top tips for getting a mortgage.

How has the current climate affected the lending market?

Phil explains that due to the pandemic things are taking longer to process and the banks are less able to take on new work.  However, he points out that banks need to make money, so they will continue to lend to the best of their ability.

Phil’s mortgage advice for first time buyers

He advises first time buyers to do some research to find lenders who are willing to lend to them, including banks that understand that a gift from “the bank of mum and dad” may be necessary for some buyers to purchase their first home.

What rates are being offered right now?

Interest rates are currently very low and unlikely to change in the foreseeable future. Phil believes that as banks haven’t been lending as much as they usually do, it’s doubtful they would make lending more difficult by increasing their rates.

How long does it take to get a mortgage offer?

In pre-Covid times it would have taken 15 working days to get an offer, but Phil admits that this has now risen to 20-30 working days.  Some lenders can process offers more quickly, but it’s advisable to shop around: Phil says one particular bank is currently taking 27 days to look at new applications.

How does the current market affect landlords?

Concerned that the recent drop in rents in central London might affect landlords’ ability to secure finance, George Cobb asked Phil for his buy to let mortgage advice.  Phil says while a dramatic, one-third reduction in rental value “might be an issue”, under less severe conditions, the landlord’s lender will “pretty much always offer another product.” 

What are the benefits of using a broker? 

According to Phil, brokers not only have an essential knowledge base, but they also have access to lenders that don’t lend to individuals. He says the current climate is the “perfect example” of why you should use a broker. 

If you’d like help to find and finance your next property purchase, why not get in touch with us at Daniel Cobb?