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Published on : May 5, 2020 14:42

Lenders Jump-start Mortgage Deals

Several big lenders have begun offering more generous terms to borrowers, making it easier to get a home loan.

This is a welcome update after lenders pulled thousands of rates at the start of the coronavirus lockdown, only offering loans with large deposits.

Over the last couple of weeks Nationwide, Halifax, Virgin and Santander have all made it easier for people to qualify for a loan.

Nationwide has resumed loans at 85% loan-to-value (LTV), while Halifax increased its LTV level from 80% to 85%.

Santander increased its maximum loan size from £300,000 to £500,000 and cut fees on its residential mortgages – whilst Virgin Money began offering purchase mortgages again.

Why are we seeing the reintroduction of these rates now?

At the start of lockdown, lenders had to respond and adapt quickly to support their existing clients and the rest of the mortgage market.

They had to introduce mortgage repayment holidays and reassess their deals in light of the new restrictions.

On top of all this, lenders had to work out how they were going to continue processing applications whilst operating safely.

But after a few weeks, lenders have managed to adapt to life under extended lockdown.

They’ve had time to handle the surge in mortgage repayment holidays and overcome issues with staff resources.

Now, lenders are able to bring a wider variety of rates back to the market which is great news for borrowers as they’ll have increased choice moving forward.

It also means that post-lockdown recovery should hopefully be swifter once we start to return to some sort of normality.

Desktop valuations

Due to the current Government restrictions, lenders are now much more reliant on their IT systems.

Lenders have had to change the way they operate, especially in regards to valuations, as their staff can’t visit the properties to inspect them.

To overcome this challenge, they’ve introduced “Desktop valuations”.

Lenders are using system-generated valuations to get property purchases and re-mortgages agreed.

Sorting out the initial challenges of lockdown and gaining confidence in the use of these valuations has encouraged lenders re-open momentarily-closed doors.

Understandably, there is a little more caution in the underwriting process. However, even if a borrower is furloughed, the lender will often take their full income into account if it can be proven that the employer is topping up the salary.

We’re still receiving lots of enquiries from people asking if it’s still possible to get a mortgage.

And with fixed rates continuing to be at an all-time low, while the base rate is almost at zero, it makes sense to enquire now with so many good deals on offer.

Head of Edward Mellor Financial services commented saying:

“Just as the lenders have quickly adapted to a new way of working, so have our advisers. We can provide you with expert advice over the phone or via video conference.

Our bespoke Mortgage Case Management system will provide you with your own client portal, enabling to share and upload documents securely.

Along with Electronic ID verification and Desktop valuations, it means we can help you take advantage of these historically low rates and complete your mortgage applications in a safe and compliant manner.”

How can we help?

Here, we have a dedicated team of mortgage experts on hand to offer you professional advice and guidance.

Our advisors compare the latest rates of 50+ high street and niche vendors to find the right one for your circumstances.

We can take appointments over the phone or via video conference depending on your preferences.

Call our team today on 0161 443 4830 and book your free consultation.

Or click here to book your appointment online.

* Your home/ property may be repossessed if you do not keep up repayments on your mortgage.

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