Mortgage Markets – The Current Situation:

Recent times have seen life in general, thrown into turmoil. For many, this has meant the postponement, or complication, of planned moves. Anything to do with moving house is generally considered quite stressful. Compound that with the recent lockdown measures, and it has likely been a bit of a nightmare. Even knowing what the current situation with the mortgage market is difficult to discern. So, here’s hoping this blog goes some small way towards helping clarify at least that bit!

What is the current situation with the mortgage market?

While the news isn’t great, the good news is that providers haven’t stopped lending altogether.  Some providers have however decided to withdraw their higher loan to value (LTV) mortgage products. This is invariably bad news for first-time borrowers (or those with low equity in their homes) who will need to delay their plans.  

How are mortgage providers currently operating?

Nationwide has stressed its change in policy won’t impact deals in progress. Their stance is to focus on helping existing members to process ongoing applications. So, they have stressed that they will still be offering mortgage deals of up to 95% LTV to existing customers. It’s hoped the changes will be temporary, and with lockdown measures slowly being lifted, there is an air of renewed optimism.

While we are all hoping for a swift recovery, it should be stated though that there is no guarantee of how long this will take. Providers have understandably been inundated with calls from worried borrowers requesting mortgage payment holidays. At the same time, like many industries, they’ve also been juggling staff shortages due to the virus. 

What’s still possible?            

According to industry experts, the mortgage market is open for business as usual. Lenders continue to work with existing borrowers; advisers continue to offer support to existing clients, and conveyancers are still contacting people to confirm when their housing transactions will complete. Mortgage products remain available, albeit with lower LTVs. Furthermore, online or automated valuations remain possible for some cases. 

The current messages is very much that if you have any concerns, you should talk to the providers just as you always would have prior to lockdown. So whether you think you might need to a mortgage holiday, reduce a payment, remortgage, do a product transfer, or even start a mortgage journey, it is worth picking up the phone to ask. There are many options available, even in the current circumstances. 

As always, if you would like to speak to a financial planner, please do give us a call on 01243 767 469. Alternatively, you can email us from our contact page, and an adviser will be in touch!

Written by Alex Welsh

Alex is a Resolution-accredited, Chartered financial adviser. Having joined the firm in 2012, he has extensive knowledge of all areas of financial planning.