Coronavirus impact on the mortgage market
Mortgage Market | Mortgage advice in Nottingham
Recently, the mortgage market has been heavily impacted by the ongoings of the coronavirus. We hope for our customers to be able to be upto speed with all the new changes that are happening. If you are having financial worries when it comes to your mortgage, we hope our Mortgage Advice in Nottingham can help through explaining what is happening in the mortgage market and get you on your way to being back on track with your finances.
One of the main problems facing the mortgage market is that surveyors and mortgage valuers are unable to carry out visits to properties. This has led to the majority of the market to be put on hold as lenders need to know what they are lending against. So without a form of valuation, they will be unable to accept an application.
Some lenders rely on an Automated Valuation Model (AVM) for a valuation on a property, this lets a lender receive a valuation without actually carrying out a visit to the property as they receive data which helps them with the property valuation. These types of mortgages are restricted and 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 is taking a different approach to the current situation. As of yet, no mortgages have been withdrawn as lenders are just putting everything on hold at the moment to see which way things go further down the line. On the other hand, we have know of lenders who have decided to extend their mortgage offers from six months up to nine to allow time for the economy and the mortgage market to get back up and running again.
Mortgage Payment Holidays
The important thing to remember about Mortgage Payment Holidays is that you should only take one if you really need to. By talking to a Mortgage Broker in Nottingham, you’re able to get in depth Mortgage Advice in Nottingham and all your options will be evaluated in order to see whether taking a mortgage payment holiday is right for you.
The most likely outcome is that they will either extend your mortgage or rebalance your mortgage payments, so the best option might be to hold off and wait. 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 a good thing 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 Nottingham
The main thing is to not panic. Our Mortgage Advisors in Nottingham 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 cans till get in touch with a Mortgage Advisor in Nottingham as we are doing business as usual to be there for you.