Flexible lending criteria more important than before pandemic

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The pandemic has altered customers’ priorities when looking for a lender, according to new research from Masthaven Bank.

Its survey of 186 brokers found that 79% think flexible lending criteria is now a bigger priority for customers compared to pre-pandemic times. Other factors which have significantly increased in importance are speed (56%), flexible product features (54%) and customer service (52%). Only 26% of brokers said low rates were more important now than pre-Covid.

Meanwhile, 28% of brokers expect to see more borrowers financially impacted by Covid-19 in the next 12 months, including customers who took mortgage payment holidays, have been furloughed or have been put on the government jobs support scheme.

The bank says that, as government support schemes begin to wind up over the coming months, it’s likely these types of borrowers will require more personalised and flexible lending solutions. A further 19% said they expected more business from borrowers with an impaired credit history.

Rob Barnard, director of intermediaries at Masthaven, said: “Today’s findings show that borrowers no longer just want low rates from their lenders. They want flexibility, efficiency and good customer service and there’s no doubt that the pandemic has been a major driver behind this shift in priorities. With so many borrowers financially impacted by Covid-19, many of these individuals are now looking for lenders who have a personal and flexible approach to lending to help them meet their needs.

“While lockdown restrictions may have come to an end, the future still looks uncertain and the full extent of the impact of the pandemic is yet to be felt. However, the housing market has proved itself to be resilient, and by working together, lenders and brokers can ensure borrowers have access to the flexible products they want and need.”

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