Coronavirus and your mortgage

Over the last week the mortgage world I once knew has radically changed, coronavirus has had a massive impact on all our day to day lives.  I am receiving bucket loads of emails by the minute from lenders updating us on what they are doing in light of coronavirus, just this minute I have received emails from both NatWest & Halifax stating all physical mortgage valuations are now on hold.  Therefore any mortgage application submitted that requires a physical valuation will not be progressed by the lender but simply placed on hold until a decision can be made on how to overcome the need to physically survey the property.   This is not good news for the purchase market as this all but kills property purchases for now, in respect of the re-mortgage market if your property requires a physical valuation you are again trapped until the situation is resolved and this could mean you are stuck on your current lenders standard variable rate waiting until you can move. 

The good news is this doesn’t stop Product Transfers, this is when your existing deal ends with your current lender and you are looking to secure a new deal with the same lender.  In most circumstances there is no requirement to fully underwrite the mortgage again, so no need to evidence income, send in bank statements or have your property valued.  New deals are simply offered by your lender to keep your business, please remember your mortgage broker can help you with product transfers and more often than not the deals we access are better than the client facing options. We also in most cases get paid by the lender so this keeps us in business at this very uncertain time. 

I fully appreciate a lot of our clients will be anxious about their future financial stability and this is evident from the amount of emails and telephone calls I am receiving.  The general theme being mortgage payment holidays or can I claim on my protection plan.  To help our clients I am uploaded a list of lenders and their present stance reference mortgage payment holidays, please bear in mind this is changing on a daily basis.  I hope this information is of use to you. 

Take care and stay safe.

Colin