Published: 31/03/2020You may have seen in the press that it's been reported that several banks are temporarily pulling purchase mortgage products but are maintaining a range of products for clients who just want to re-mortgage and switch deals.
This is true, however, it’s not reflective of the entire mortgage market currently. Some lenders are now offering for purchases up to 80% LTV, a virtual desktop valuation (this will not be the case for all properties, as they may not be suitable for a desktop valuation). In order to support the pause in the property sales market, lenders are now also offering products with either an extended 6 or 9 months offer window to cater for any delays created by the COVID-19 outbreak.
Broadland Consultants’ current advice to clients is that if they are happy to offer on a house and have a sufficient deposit for a lender to conduct a desktop valuation, then proceed with the mortgage application now.
It is thought that when things return to a normal working routine, mortgage rates for borrowers will at this stage increase slightly to pay for the current 3-month mortgage payment holidays that banks are offering.
Even if your purchase doesn’t qualify for a remote desktop valuation, it's still worth getting the mortgage application off to the lender to get it fully approved (subject to a physical valuation being completed) and get the rate secured while the interest rates are low.
They have also identified the local firms that are still successfully remotely operating and are able to offer a full service to clients with property conveyancing and are there to push the transaction through so it is ready to exchange when things return to normal.
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*Please note due to the evolving situation with the COVID-19 outbreak this information is correct as of 30/03/2020 - for the very latest updates on the mortgage market and getting help with arranging a mortgage or re-mortgage for a cheaper rate please contact the Sowerbys team to book a no obligation consultation with Broadland Consultants mortgage advisers.