There’s no denying that that current pandemic has impacted on pretty much every aspect of life as we knew it. Unfortunately, this also includes the processes you now have to go through in order to buy a home, or even to simply switch mortgage lender.
Here are some of the key changes:
- Mortgage rates are low
Interest rates are now at a record low, which is great news for anyone looking to buy a property or switch to a new mortgage deal. According to Moneyfacts, the average 2-year fixed rate is now 2.02%, with some lenders going lower still at less than 1.5%*
- A waiting game
Mortgage paperwork, valuations and legal checks are taking longer than usual due to backlogs from the first UK lockdown. There are no hard and fast rules as to exactly how much longer the process is taking, however our local mortgage advisor can provide a rough indication of timescales based on previous cases.
- Additional checks on income
Lenders are now asking applicants if their income levels or employment terms have been impacted by Coronavirus. This could include being on Furlough or reduction of hours (and therefore reduction in pay). If your income has gone down, the amount you can borrow will almost certainly go down as well. Some lenders may also ask applicants to complete additional paperwork to ensure any changes in circumstance are noted immediately.
Expert mortgage advice
Our network of expert mortgage advisors in York has access to thousands of mortgage products from over 90 lenders. That means they’re able to help find the right deal to suit your personal circumstances and work with you every step of the way until you get the keys in your hand. To speak to a member of our team for a free, no obligation appointment, please give us a call on 01482 470444 or send us an e-mail.
*information correct at 13/10/20 courtesy of Money Mail
Your home may be repossessed if you do not keep up repayments on your mortgage There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.You may have to pay an early repayment charge to your existing lender if you remortgage.