The Mortgage Market has seen adverse effects due to the coronavirus. Our Mortgage Broker in Middlesbrough hopes to keep all out customers upto date with what is going on in the Mortgage Market as a safe heads up. Recently, a few things have changed so if you’re having financial worries or doubious thoughts about your mortgage, then we hope you’ll find our mortgage advice in Middlesbrough useful.
One of the main problems in the mortgage market, mostly impacting first time buyers in Middlesbrough 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.
One of the biggest challenges that the mortgage market is facing is that surveyors and mortgage valuers aren’t able to carry out tasks such as property valuations due to the lockdown. This has led to the majority of the market being put on hold. Thus causing lenders to not accept many further mortgage 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 2020, some lenders have restricted their maximum loan to values down to 60% and are expected to go even lower at some point. So, these types of applications will stay ongoing but it is unlikely higher ones are being continued until further notice.
Each lender is taking a different approach in regard to what action they take. So far, no mortgages have been withdrawn with everything put on hold at the moment. 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 get back to normal.
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 approaching a Mortgage Broker in Middlesbrough, you can obtain mortgage advice in Middlesbrough to see what options are best for your situation. There are two outcomes which will be more likely than others which include:
If you do decide to get in touch with your lender about your monthly payments, then it’s best to get in touch online due to the number of calls in which they are receiving.
It’s also a good to double-check that a payment holiday won’t affect your credit rating or mark any arrears against your account. Additionally, it’s advisable for first time buyers in Middlesbrough to not cancel your direct debit, and in order to take a payment holiday, you will need to seek permission from your lender.