Recently the mortgage market has taken a huge hit from the Coronavirus. Everything around us is moving so fast. As such, we’ve decided to bring you up to date with what’s going on at the moment.
We aren’t trying to scare you, we just want to explain what is happening, hopefully shedding some light on how we may be able to help you through the problems you may encounter over the next few months.
One of the main problems for the market is that surveyors and mortgage valuers aren’t able to go and visit properties like they usually would. This means that right now, the property market is on hold. Lenders need to know what they are lending against, so some sort of valuation is needed before they accept your application.
Some lenders rely on the Automated Valuation Model (AMV’s) for property valuations. This is essentially a way for lenders to receive a valuation without actually going to look to the property in person. This is only used, however, when they don’t need someone to go look at the physical property. These types of mortgages are only restricted to lower loan-to-values.
Over the last couple of days, as of March 28th, some lenders have been restricting their maximum LTV’s (loan-to-value) down to 60%. So, they are continuing to process these types of mortgage applications, but not necessarily ones at higher LTV’s.
Different lenders are taking different approaches to one another. So far, no mortgage offers have been withdrawn, though we think it won’t be long until that happens. Lenders are putting everything on hold before rushing into accepting more mortgages from potential customers. In fact, we have seen that some lenders have decided to extend their mortgage periods from six months up to nine to allow the economy and the mortgage market to get back up and running once again.
Recently we spoke about Mortgage Payment Holidays. We felt it best to provide an additional reminder that you should only take one if it’s absolutely necessary. Undertake your own research, speak to a Mortgage Advisor in Lincoln, evaluate all of your options and see whether or not it’s something you should explore.
It’s likely the lender will extend the period of your mortgage anyway, so you may be better off just waiting a while longer and seeing what happens. If you aren’t sure about your ability to keep up your monthly mortgage payments, you should get in touch with your lender.
If you decide this is your best option, you’re probably better off enquiring online due to the number of phone calls they are receiving from distressed customers.
If you’re thinking of requesting a payment holiday, make sure you check that it won’t affect your credit rating or mark any arrears against your account. We also recommend that you don’t just cancel your direct debit and remember that you’ll need permission from your lender beforehand.
Unless you are worried you may lose your job as a result or something like that, you should not pull out of your purchase. We would advise that everyone proceed as normal for now to see what happens. You are not committed to completing your purchase until your contracts are exchanged.
There are no changes here. We will advise you accordingly, once we have assessed your requirements. Please get in touch for Mortgage Advice in Lincoln for remortgage advice.
The key thing here is to not worry about yourself. Our team are all here to help you with your mortgage problems, helping you through the next few months. At some point in the coming weeks or months, things will restart again. We’ll all be back to normal in no time.
You can still get in touch with a Mortgage Advisor in Lincoln at Lincolnmoneyman from 8 am -10 pm, 7 days a week. Business is as usual. We can’t wait for you to get in touch and help you with all of your mortgage needs.