As lockdown restrictions begin to ease, families and businesses across the country are coming to terms with the financial fallout caused by COVID-19 (Coronavirus). And the mortgage industry is no exception.
We’ve taken another look at your more commonly asked questions, with Mortgage & Protection Specialist, Sharon Kennedy assessing the current state of play. 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, mainly on the ‘higher loan to values’. With the reintroduction of physical valuations, there’s a backlog with lenders from the lockdown period. They are currently working on cases that were submitted and waiting for a valuation. This has caused them to be a little slower in the return to the market.”
“The situation is changing day-by-day and we’ve seen the recent return of a handful of lenders coming back to the 90% LTV bracket. We expect more to follow suit shortly.”
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.”
“However, there are still some restrictions on the loan to values.”
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.
Sharon Kennedy is a Mortgage and Protection Specialist with over 25 years’ experience in the industry.
Her principal focus is on helping our diverse client base secure mortgages, re-mortgages, insurance arrangements, and second charge loans – regardless of their personal circumstances. ‘Complex cases’ are her norm and she specialises in helping those who may have struggled to get what they want elsewhere, such as contractors, first-time buyers, self-employed workers, and those with adverse credit histories or unusual incomes.
Despite her passion for her job – and her clients – Sharon has a busy home life too. She lives near Preston with her husband and two sons.