Mortgage brokers say COVID-19 has made criteria more flexible than ever.

The pandemic has made mortgage brokers and borrowers more realistic.

Flexible lending criteria are now a bigger priority for clients than before the pandemic started, according to four in five (79%) brokers, according to Masthaven research.

Other factors that have increased significantly in importance are customer service (63%), speed (60%), and flexible product features (55%).

In contrast, 56% of brokers said that low fees are no more important now than before Covid-19 and 54% said the same about low fees.

“Borrowers have reassessed the situation.”

Rob Barnard, Masthaven’s director of brokers, said: “The coronavirus has affected every aspect of our lives for almost a full year and it seems likely that it will stay with us for a while longer. It is perhaps no surprise then that borrowers have reassessed what is important to them when it comes to looking for mortgage providers and the homes they live in.

“Clearly, the fact that many people were forced to stay home for extended periods and adapt their homes to offices, gyms or schools, has put in clearer perspective what they really want when it comes to property. This once-in-a-lifetime event could have a long-term impact on the UK real estate industry.”

“Borrowers have also been clear about what they want from the lenders. With so many affected by the pandemic, clients are looking for lenders who have a flexible approach and can meet their needs.”

“The stamp duty holiday deadline has also undoubtedly increased the demand for faster transactions, while customer service, which has always been a crucial part of any business, has taken on a new importance and has become an essential duty for lenders. It is important that lenders listen to their clients and adapt accordingly.”

At least a quarter of mortgage brokers expect 2021 to be a better year for business.

The majority (92%) of brokers said that their clients had been financially affected by Covid-19 in the second half of 2020.

In fact, more than a quarter of brokers (26%) say they expect to see more business in 2021 from borrowers who have been financially affected by COVID-19, whether it involves a deferral of mortgage payments, suspension or payment of government employment support plan.

An additional 20% said they expected to see more business from borrowers with a bad credit history.

A majority (57%) of brokers said home buyers are now prioritizing larger homes to allow for home office space, and a third (33%) said their clients were prioritizing moving out of a city to a quieter area.

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