This week, the UK passed the rather unwelcome milestone of one full month in lockdown. From businesses to families, the financial fallout from COVID-19 (Coronavirus) is taking its toll on us all. And the property industry is no exception.
Earlier this month, we welcomed Sharon Kennedy to the Danbro Financial Planning family, as our new Mortgage & Protection Specialist. To give you some important insight into the current state-of-affairs surrounding mortgages - and how it might affect you - we put five of your most frequently asked questions to Sharon. Here’s what she had to say.
1. Can I still buy property in the current climate?
“The good news is, yes you can,” Sharon says.
“The majority of lenders are still accepting applications, however there are some restrictions. These are dictated by the fact that physical valuations cannot be carried out at present. So, the vast majority of lenders are happy to proceed with a desktop value. Loan-to-value restrictions do therefore apply. These are being reviewed on a daily basis and are gradually increasing.”
2. Am I able to arrange extra borrowing by re-mortgaging my property?
“Yes, you’re still able to re-mortgage and borrow extra for things like home improvements and raising capital. Again though, it’s all subject to desktop valuation.”
3. What can I do if I'm struggling to make my mortgage payments?
“I can’t stress this enough,” Sharon says, “but please do not miss your mortgage payments! It will have a big impact on your credit file.”
“Lenders are actively looking to help people who are in financial difficulty with payment breaks (/ holidays), which will not impact your credit file. So, if you’re struggling to make your mortgage payments at the moment, please get in touch with your lender as soon as possible.”
4. I’ve been furloughed by my employer, will a lender still consider my income?
“The answer is: yes they will.”
“Although this is limited to certain lenders - and will likely include restrictions - the strong message we’re getting here at Danbro Financial Planning is that lenders still want to lend. By and large, they want to help clients in whatever way they can at the moment.”
5. My interest rate is due to end with my current lender, am I able to do a product transfer?
“Yes. There has been no impact on this area and lenders are still actively accepting product transfers, so you shouldn’t have an issue.”
DFP: Mortgages & Protection
Danbro Financial Planning provide expertise in mortgages, re-mortgages, and related protection, for people across the spectrum - including contractors and the self-employed.
With a combined experience of over half a century in the industry, our specialist team have a unique knowledge of the market, as well as longstanding relationships with a host of existing lenders.
What’s more, we’re a key part of the Danbro Family, meaning we’re able to liaise with our partners in accountancy and umbrella employment. Danbro Financial Planning offer holistic financial planning advice, ensuring that your mortgage and protection plans suit your overall financial goals.
For regular updates regarding mortgages, protection, and financial advice more generally, be sure to check out our blog. And, to find out how you can protect your finances through this period of unfamiliarity, click here. Your home may be repossessed if you do not keep up repayment on your mortgage or other debts secured against it.
In the meantime, please stay safe and take care.