We would like to offer a little (more) certainty in these uncertain times…
There has been a lot of media coverage over the last two days in relation to the Mortgage Market in the UK.
Despite what the BBC and others have said, the UK Mortgage Market has NOT gone into lockdown.
Along with most other companies, all lenders are experiencing issues working normally as they continue to adjust to having the majority of their staff working from home. A further complication comes from the inability to obtain valuations of properties as the valuers they rely upon are unable to carry out physical visits to property. And as though that is not enough, most lenders are working with high volumes of calls and emails in relation to payment holidays. Understandably, they want to prioritise helping existing clients in these times of need.
For at least the next 2 weeks, valuers (as non-essential workers) will be unable to leave home. However, the majority of lenders have announced a willingness to use existing data to carry out electronic rather than physical valuations. With most, this will be acceptable for mortgages up to 75% or 80% of the property value.
Over this level, most lenders are accepting and processing applications for mortgages and remortgages, but simply putting applications on hold until a valuation can take place.
Business as usual
With many lenders it is therefore business as usual for borrowing up to 75% or 80% and a short delay on all other applications.
Where applications are already submitted and valuations have been carried out, there should be no delay.
As mentioned in one of our previous blogs, a Payment Holiday can make a lot of difference, but should only be taken if really needed. Although it will not affect your credit history, it may reduce your options with your existing and potentially future lenders.
Get in touch
We recommend that you talk to us now if:
- You are coming to the end of your interest rate within the next 9 months
- You will need to borrow additional funds within the next 12 months
- You are thinking of moving within the next 12 months
- You have an application already submitted with us and are unsure of the status.
Of course we are also available to talk to whatever your financial concerns. Please contact us on 01635 521 300 or email firstname.lastname@example.org.
YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.