Coronavirus impact on the mortgage market
Mortgage Market | Mortgage advice in Harrogate
In the past week the mortgage market has been heaviy affected by the ongoings of the coronavirus. We here at Harrogatemoneyman hope to inform all our customers of the ognoings of the mortgage market as and when things move forward. So far, a few things have already happened and if you are having financial worries about an upcoming mortgage or your current mortgage then we hope you’ll find the current information useful to you.
One of the main problems in the mortgage market, mostly impacting first time buyers is that surveyors and mortgage valuers are not able to carry out proper valuations on properties. This has led to the majority of the market to be put on hold at this moment in time because lenders want to be sure about what they are lending against. Without a proper form of valuation, they are unable to accept many applications.
However, some lenders rely on an Automated Valuation Model (AVM) for a valuation on a property, meaning some applications can go forward, as these valuations are based on data that the lenders receive. Although, these types of mortgages are restricted to lower loan-to-values only.
As of March 28th, some lenders have restricted their maximum loan to value down to 60%. So, these types of applications will stay ongoing but it is unlikely higher ones are being continued.
A lender’s viewpoint
Each lender in this situation is taking a different approach. So far, no mortgages have been withdrawn with lenders just putting everything on hold. On the other hand, there are lenders however, who have extended their mortgage offers from six months up to nine months as to allow time for the economy and the mortgage market to fall back into place again.
Mortgage Payment Holidays
The important thing to keep in mind when it comes to Mortgage Payment Holidays is that you should only take one if you really need to. By speaking with a Mortgage Broker in Harrogate, you will be able to easily obtain Mortgage Advice in Harrogate to see what options are available to you.
There are two outcomes which will be more likely than others which include:
- Extending your mortgage.
- Rebalancing your Mortgage payments.
If you do decide to contact your lender about your monthly payments, it’s best to get in touch online due to the sheer number of calls in which they are receiving.
It’s also good to check that a payment holiday won’t affect your credit rating or mark any arrears against your account. Additionally, it’s advisable to not cancel your direct debit and to take a payment holiday you will need to seek permission from your lender to take a payment holiday.
Speak to a Mortgage Advisor in Harrogate
The main thing is to not panic. Our Mortgage Advisors in Harrogate are here to help you with any mortgage enquiries you may have and will be here to get you and your mortgage through the next couple of months.
At some point in the coming weeks or months, we will be back to normal again but for now, you can still get in touch with a Mortgage Advisor in Harrogate as we are doing business as usual to be there for you.