How To Access Affordable Rate Mortgages?
When the housing market re-opened in the middle of May 2020, property portals such as Rightmove and Zoopla listed a considerable increase in buyer demand on their sites. However, these platforms aren’t the only ones which experienced a considerable increase in demand, with MoneySuperMarket indicating a spike in mortgage searches.
The well-known price comparison website announced an 18% increase in week-on-week visitors looking for mortgage deals the day after the market opened.
Emma Harvey is the Mortgage Expert at MoneySuperMarket, said; “The prospect of the housing market starting to open up again will be welcome news for many would-be homeowners and movers, however, like many aspects of life in the COVID-19 era, it will be a far from straightforward recovery. Underwriting and approving mortgages is still a hugely manual process which requires workers from across the industry being able to work together. Not just the lenders themselves, but also brokers, valuers, estate agents, councils and solicitors.”
Speak to your lender or broker if you are in the middle of an application
With many moves in the housing market put on hold due to the lockdown, there will likely be many people in the middle of their mortgage application. While everyone should continue to evaluate their options, people who are underway with the mortgage application are encouraged to continue with the process. At the very least, these prospective buyers should engage their lender or broker to decide if it is best to continue with their application.
While there have been many changes to the way we live, and the housing market, it is vital to remember the fundamentals when it comes to assessing affordable rate mortgages. Your credit score and ability to pay remain crucial factors in arranging the best mortgage for your needs.
Emma Harvey discussed the challenges faced by applicants dealing with the COVID-19 pandemic. Emma said; “Banks will always ask for the last three months of earnings, with some lenders offering more flexibility around exceptional circumstances than others. However, those people who are currently furloughed should not suffer any adverse credit or change in risk profile. Consumers just need to be honest about the situation and if in doubt talk to their lenders or broker for support. “
The deposit remains a crucial component of the mortgage application
Your circumstances will dictate what steps you can take to bolster your application, but at the heart of every mortgage application is the deposit you can offer when looking to buy a home. Emma said; “As always, the larger the deposit you are able to put towards your property, the better. It will bring down your LTV and give you access to the lower interest rates with lenders. If you’ve been able to save any additional funds during the lockdown, this will certainly be beneficial.”
Applying for a mortgage is the last thing many people are considering, but for some individuals and households, now is the right time. Mortgage lenders are still active, so anyone interested in arranging a mortgage, should prepare themselves for the process, and speak with industry experts.