The coronavirus pandemic is changing the way we live our lives. Businesses are temporarily closing their doors; we’re staying at home… we’re stockpiling toilet roll. It’s all going a little crazy.
This also applies to the world of mortgages.
Homeowners are being offered mortgage ‘holidays’; essentially a three-month period where you’re able to delay your mortgage payments – without your credit rating being affected. It’s a scheme that’s available for owner-occupiers and buy-to-let landlords.
If you are concerned about how you’ll make mortgage payments, then you should apply for the break with your current lender.
It’s important to note that acceptance isn’t guaranteed, but the main banks such as; Natwest, Halifax, Santander and Nationwide are all involved. It is a simple process to apply with your lender, either online or calling direct.
However, please do remember that if you can afford to pay your mortgage, it may not be the most suitable approach (as it will need to be paid at a later date). If you need any support, just message me and I would be happy to help.
Another way in which the mortgage market is changing, is that some lenders are pulling out of the market for new applications for purchasing or re-mortgaging – and more are likely to follow. This is changing on a daily basis.
Nationwide will only offer loans to those with 25% equity or more. In a statement, they said it will allow them to “focus on supporting existing mortgage members, while continuing to process ongoing applications”.
Other lenders that have taken similar action include Santander and Skipton Building Society, but many have gone further, by reducing the loan-to-value (LTV) ratio to 60%.
That means borrowers will need a 40% deposit or equity in their home to be able to get a mortgage.
Lenders that have done this include Barclays, Halifax and Virgin Money, while Coventry Building Society has cut its LTV ratio to 65%.
This is a temporary measure that will allow lenders to reassess the market and provide support to their current customers while having fewer staff to deal with enquiries.
However, there’s actually potentially never been a better time to re-mortgage after The Bank of England cut the base rate from 0.25% to an all-time record low of 0.1%. That’s why it’s so important for homeowners to review their mortgage rates.
If you’re unsure about where to start, I can assess your mortgage, for free, to make sure you’re on the best deal and to provide advice about which lenders are available. Even if we can find you a better deal, this is a no-obligation consultation. It could potentially save you thousands of pounds.
I have a number of telephone slots available this week.
To get the ball rolling:
- Call, Whatsapp or text me (07834818805) to arrange your slot
- Get together your last 3 months bank statements, a recent bill, a form of ID and proof of income
- Your appointment will take place over the phone, I’ll assess whether you could save any money
- If you decide to proceed, documents can be sent electronically
Please note: Your home may be repossessed if you do not keep up repayments
You may have to pay an early repayment charge to your existing lender if you remortgage early. There may be a fee for arranging a mortgage and the precise amount will depend on your circumstances. This will typically be £399 and will not exceed 1.5% of the loan.