Banks and Building Societies ‘keen to lend’ and loan to value ratios getting back to normal!
Your RB&Co Briefing On The Mortgage Market
Existing mortgage holders – lenders have offered existing customers the option of a ‘3 month payment holiday’ if they are affected by COVID 19. This applies to residential customers and also ‘Buy to Let’ customers who may be affected by tenants being unable to pay rent. Following the payment holiday, the lenders will recalculate a marginally higher mortgage payment to include the effects of the holiday period.
The Lenders position in the market – After initially lowering all loan to values most of the main players have now returned to the market at 85% maximum. There is one major bank still happy to lend at 90%.
Lenders have approached this on a “keep it simple” basis, and some of the more specialist areas like Buy to Let / Shared Ownership and Help to Buy are still slightly more restricted.
Service levels from lenders are very similar to pre virus situation. However the big positive here is that lenders still have a significant appetite to lend and rates are still at one of their lowest points for many years.
Mortgage Applicants Income – Because of the effects of the virus on employed and the self-employed some lenders have added extra questions regarding the effect on an applicant’s income/business. However, this can be largely answered on a ‘self-certification’ basis.
Valuations – There has been a marginal hold up in the market around arranging valuations. Lenders have been very flexible and tried to accommodate automated valuations where possible. The higher loan to value mortgages still need a physical valuation, and these have recommenced this week, but there is a backlog for valuers to handle, so delays in the confirmation of a mortgage offer may be somewhat delayed.
In summary – Lenders still want to lend, at historically low rates. Clients have probably been through the lockdown period giving thought to their future housing plans. Once the housing market restarted last week this has produced a surge in enquiries from prospective buyers. It is not all doom and gloom!
For more information, we can put you in touch with an experienced Independent Mortgage Adviser.
The Robert Bell & Company Team
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