- Mon 12 Oct 2020
We are all too aware of the impact on our daily lives that the pandemic is having, although it may not have crossed your mind as to what that may mean when it comes to taking out a mortgage or increasing your existing mortgage.
The economy has bounced back from the initial lockdown, the housing market has seen a large spike in activity with people having realised their living situation wasn’t what they really wanted and so all systems are go, right? In many respects the answer is yes, although there are a number of financial factors to consider before jumping in and finding your next home. Due to the significant increase in demand for mortgages, it is worth remembering that mortgage companies will have thousands of staff that will have been primarily based in large office spaces, which now require social distancing and therefore are unlikely to be able to accommodate the same number of staff. This will naturally result in less resource available to process the increased demand.
Mortgage companies must also consider whether the economy will take a dip in the coming months/years and therefore may wish to protect themselves by not lending to people with small deposits, as this will be seen as a higher risk to their business.
As a result of both the above points, many mortgage products have been withdrawn, particularly those products for people with a 5% or even 10% deposit.
For those with small deposits, all is not lost as there is still the Help to Buy scheme available on brand new houses, however be mindful of the fact the processing time for the Help to Buy team will also have been lengthened due to the upturn in activity as well.
A final point to note; almost all lenders will also be taking a closer look at any self-employed applications to see how the business was, or not, affected by the lockdown and whether that business performance is now clearly back on track to ensure any mortgage will be repaid.
So, whilst it may sound slightly negative, the majority of banks and building societies are actually still very keen to lend, it just requires a little more thought, and without doubt, the very best mortgage expertise to ensure you identify the right product and right lender at the outset.
A few suggestions to look out for when seeking some help for your mortgage;
Bradleys Estate Agents have some of the best Mortgage Advisors in the region and are able to offer a socially distant face to face meeting, video call or telephone call to discuss your position and requirements. Bradleys Mortgage Team have a wealth of experience with all types of mortgage applications including those requiring Help to Buy, shared ownership, first time buyers, Military mortgages, re-mortgages for a wide range of situations and much more.
You can contact Bradleys Mortgage Team directly on 01395 222391, visit the website or via your local branch of Bradleys Estate Agents.