How to get a mortgage in Lockdown
With England going into lockdown until at least the 15th February, we wanted to update you on how we can get you a mortgage in Lockdown as the property market still remains open throughout this period.
If you are looking to move, or need to refinance, there is no need for you to miss out, so here are the 3 key things we will be looking at so that you get the best possible outcome
This was the biggest issue in the original lockdown, but there is good news in that the Government guidance explicitly mentions that moving home should not be a problem.
There will be practical considerations as for viewings to happen and surveyors going to properties, it needs to be safe to do so. Meaning the property will need to be vacant, or vacated, which won’t always be possible. In these instances, lenders will use their ‘Automated Valuation Models’ or AVMs for short. All lenders slightly differ in how they use AVMs but the principal is the same – they use data from the Land Registry, their own experience, and other sources to obtain an online valuation. Most of these models work up to a value of around £1.5m for houses, but that can be much less for Flats. Knowing which lenders do what is crucial, so we have all the tools we need to make these decisions plus our own experience from last year.
Without a survey, you simply can’t get a mortgage agreed, so understanding this area and showing the right level of expertise is vital when considering how to get a mortgage during lockdown.
Access to Products
It has always been the case that we have unrivalled access to lenders, and many exclusive products that are cheaper than you obtain by going directly to a bank, so that won’t change. As with lockdown 1, more business was pushed to brokers as we have the capacity to deal with it when lenders were struggling, so that will be the case again this time.
Also, it is very important to note that we can access lenders own products for internal remortgages. This is called a Product Transfer and as per the above, we can often get better rates with your existing lender than you can by contacting them directly. It seems odd, but as the onus of advice is with us, not the bank, plus we have the capacity to deal with it, it makes sense for lenders to open this up as an option to us so we can ensure you get the best possible deal when you refinance. Whether it is best to stick with your bank, or move elsewhere, only a broker can see the whole market for you when looking to see how to get a mortgage in lockdown.
In our market update yesterday we said this could be a defining issue this year, so a national lockdown is only going to exacerbate that.
We can access many lenders back office system directly, which speeds up the process. But more crucially, we have internal data on which lenders are moving quickly, and which are not. If you need to move, or refinance by the end of March, this could be the difference of you getting the right outcome or not.
Put that together with the survey issues highlighted above, it is a case of balancing off the rate you are offered, with the timeframe the lender can move in, and their capacity to get a survey done which will define the best lender for you during lockdown.
Talk to us
We have been here before, and our team of experienced advisers know how to navigate this situation. There really is no practical reason for you to change your plans, so we are here to help you all the way.
Best Mortgage Rates
2 Year Variable from 1.19%
2 Year Fixed Rates from 1.04%
5 Year Fixed Rates from 1.27%
BTL Rates from 1.19%
The actual rate you will be offered will be dependent on your personal circumstance and deposit level. Please speak to one of our advisers so that they can guide you through this process
Source: Twenty7Tec January 2021
Should you wish to speak to one of our mortage brokers or protection advisers, Click Here and you will find everyone’s contact details.
Your property may be repossessed if you do not keep up repayments on your mortgage.
This firm usually charges a fee for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.
Rose Capital Partners Limited is an appointed representative of PRIMIS Mortgage Network, a trading name of Advance Mortgage Funding Limited which is authorised and regulated by the Financial Conduct Authority.