There’s no denying that that current COVID pandemic has had an impact on nearly every aspect of life as we know it. Unfortunately, this also includes the processes you now have to go through in order to buy a home, get a foot on the property ladder, or even to simply switch mortgage lender.
Here are some of the main changes explained:
Mortgage rates are at a record low
‘Interest rates are currently at a record low which is great news for anybody looking to buy a new house or remortgage to a new deal. 'According to Moneyfacts, the average 2-year fixed rate is now at just 2.02%, with some lenders going lower still at less than 1.5%*
The waiting game
Mortgage paperwork, valuations and general checks are taking longer than usual due to backlogs from lockdown and staff continuing to work from home. There are no hard and fast rules as to exactly how much longer the process will take as each lender is operating a little differently, however your Mortgage Adviser can provide a rough indication of timescales based on previous cases.
Lenders are now asking applicants if their employment status or income levels have been impacted by Coronavirus. This could include being placed on Furlough or reduction of hours, and therefore reduction in pay. If your income has reduced, the amount you can borrow will almost certainly reduce as well. Some lenders may also ask applicants to complete additional paperwork to ensure any change in circumstances are noted immediately.
Expert mortgage advice
Our experienced mortgage brokers in Sheffield have access to thousands of mortgage products from over 90 lenders. That means we’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 0114 4789 234 or send us an e-mail.
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*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.