Coronavirus Mortgage Update
Coronavirus Mortgage Update
We will be providing our clients with a regular Coronavirus Mortgage update from the mortgage industry and how things are changing the way we work. We are being updated several times a day from many different sources on how the industry is reacting to COVID-19.
Tuesday 14th April 2020
We are still here although it does not feel like nearly 3 weeks since we last updated you! We have been really busy and our stance is still not to stop working and gathering updates from around the industry! I will provide a separate post on this in due course but here is a flavour of what is to come:
*We have made a decision not to close down but we are successfully working on a remote basis – clients are welcome to work with us on a non-face to face basis by telephone and email*
New Mortgage Customers! We are still taking on new clients on a daily basis and looking after existing clients very well. We are communicating with our clients and ensuring that they specifically know where they stand. As you may appreciate many are at different stages of the mortgage process and they need to know what COVID-19 means to their circumstances.
There has been a wave of new inquiries from people mainly looking to capital raise during COVID-19. Some of these clients have come to us because they know that we are still open for business when their regular mortgage brokers have been furloughed. We are happy to take on all types of new inquiries but what is important to our clients at the moment is the facility to remortgage, choose a new deal from their lender (easier if we do it) or capital raise whether it is for personal or business reasons.
If you are not in the above category then please still contact us as we still may be able to help. We will still provide advice and if a solution cannot be found now then we will get you into a good position for when things return to normal.
Home Movers – The latest government advice is for home-movers and renters to delay moving house. Those that have their home listed on the market with an estate agent want to continue marketing their home and take advantage of potential buyers browsing during the lockdown period.
Mortgage Lenders – Approximately half the amount of mortgage products are available now in comparison to before the COVID-19 outbreak. Every lender is reacting differently to COVID_19 and is dependant on many internal and external circumstances.
Those clients with large deposit or large amount of equity within their property can in some cases bypass the need for a physical valuation. Lenders have in some cases adjusted the type of business than can be submitted, the acceptable LTV (loan to value) and the products available. We have seen lenders change their product range to reflect the market.
Conveyancing – Solicitors are still working as normal albeit hopefully they are all working from home. Some firms have furloughed their staff so it is important that we guide you on this.
The best advice we can give is to stay safe!
The next best advice is that life still goes on. Don’t necessarily shelve your plans or assume that what you need/want cannot be done.
We have our ear to the ground and know what s going on in the market very well.
Rule Number 1 – Pick up the phone and speak to Chris on 07504 262 317
Thursday 26th March 2020
Once again, Thank you for tuning into our coronavirus mortgage update. We are here to serve new and existing customers as best we can.
With businesses across the UK being severely impacted by the CoronaVirus outbreak, I can announce that we can help with capital raising. Most mortgage lenders will not allow you to capital raise if you intend to use the funds to support your business. These lenders are happy to lend you additional money for home improvements, a holiday and to buy a new car for instance but the list is limited. There is a range of second charge lenders also called secured lending which will allow you to raise finance when you intend to use the proceeds for your business. The good thing here is that we do not have to disturb your current first charge mortgage. This is good especially when you are still in a fixed-rate period.
As ever, it is up to us as mortgage advisers to advise based on your circumstances.
Wednesday 25th March 2020
We are still here to serve you as best we can but the need for social distancing has impacted the industry somewhat. The larger mortgage lenders are taking a step back in terms of the service that they can provide. For the time being, these lenders are focussing on priority cases which are those due to complete in the next few days.
The smaller lenders seem to be more nimble and are saying it is business as usual. They have been able to convert to home office working quite seamlessly.
Tuesday 24th March 2020
Not surprisingly my telephone has been ringing off the hook most of the day and my inbox has been filling up with people wanting a Coronavirus Mortgage Update.
So far it has been business as usual but that has not lasted long. I am going to provide you with a Coronavirus Mortgage Update as follows:
Breaking News!!! Surveyors have been pulled off the road on a nationwide basis as of today. I believe that this decision affects all mortgage lenders from the smallest to the largest. Lenders are looking at contingency plans to try and prevent the industry from grinding to a halt. Each lender will make their own decisions. I have heard that some lenders will look at alternative ways to survey but it depends on a case by case and lender by basis.
Your Mortgage Adviser – I am currently working remotely so it is almost business as usual. I am still available to provide advice and arrange your mortgage. If I have already arranged your mortgage then I shall continue to process your mortgage in the usual way. Online portals remain effective but getting through to mortgage lenders is a little more challenging at times. Our firm (around 30 mortgage advisers) are now all working remotely. Working remotely means working differently but we are experts at this and well-practiced in remote working procedures.
Mortgage Lenders & Packagers – Not all mortgage lenders are the same as we know. In the last few days, we have seen mortgage lenders try to adapt to the pandemic whilst still providing a service to brokers. We no longer meet with lenders on a face to face basis but we are able to call them, especially as many now work from home. Some lenders have requested that we email only but that is not the same for all. The technology is there for lenders to adapt.