What the papers said about new lenders and specialist mortgages

As household name M&S Bank entered the mortgage market and launched its first product range last week, the Times looked at what they will be offering in terms of criteria. The suggestion that the bank will allow up to 4 borrowers was welcomed as a boost for buyers struggling to afford their first property, or even move up the ladder. Experts also highlighted the incentives on offer, including a free property valuation and cashback, both of which can contribute to the overall value of some of the deals on offer. The Mail on Sunday focused on the newly self-employed, at a time of year when many people decide to ‘go it alone’. There are a numbers of areas that need to be considered before making the change, such as childcare costs, income protection, and understanding the new tax position. A newly self-employed homeowner can also find their borrowing potential restricted until they have built up an adequate earnings record. The Sunday Times provided some answers, by looking at the variety of specialist mortgages available on the market. High street lenders often have very stringent criteria when it comes to ‘complex’ cases such as self-employed borrowers, despite statistics revealing that there are now 4.81m people in the UK working for themselves. The good news is that some smaller lenders offer more flexibility, with some specialist deals only requiring one year’s accounts as opposed to the standard three. Specialist mortgages can also help older borrowers, those with unusual properties, professionals and those working in armed forces and stationed abroad.