How difficult is it to get a mortgage during the Pandemic?
As glimmers of light start to appear at the end of what has been an exceptionally long tunnel for all of us, our financial advisors are regularly asked about how the pandemic has affected mortgage rates and the chances of getting a ‘yes’ from a lender.
The record interest rate drop to just 0.1% has been widely publicised. As a result, lenders have become more stringent with their products. Before the March 2020 lockdown, there were 5222 mortgage products on the market. By May, the number had decreased to 2566 (source: Experian).
Contrary to the negativity and nervousness that has surrounded lending during Covid – we’re pleased to reassure clients that you can and should apply for a mortgage right now, as we face what could very well be a ‘new normal’ for timescales and the steps taken to find the right deal for you.
This is where our role as your mortgage advisor is more vital than ever.
The latest data indicates that there was a drop in lending in 2020, however, given that we had a period of lockdown this was an indication that the market is still buoyant for mortgages.
Chris Tudor, our Senior Mortgage Adviser discusses the current landscape for mortgages. He explains: “The team actually experienced a 35% increase in demand for mortgage advice last year; a signal that expert guidance has never been more valued. We are noticing that banks are also heavily invested in mortgage advisors, with the majority of their lending being through the broker channel. The banks’ investment in our services ensures that we have access to the broadest range of mortgage products for our clients.
We are perfectly positioned to find the best product to suit your individual needs, as well as lend support and assistance during any issues that could prolong the time it takes to get a mortgage. From construction slowing down on new builds, to a lack of physical property valuations and lenders working from home, steps in the process that could typically take a working week can currently take up to four times as long.
During this turbulent period, we have proactively created the smoothest path for our mortgage clients. We have addressed thousands of lender criteria changes in the last year; a staggering number compared to what we would address in more usual times”.
As the UK faces the end of its third lockdown, spring is in the air and we’re feeling cautious optimism for all stages of home and business owner. At Tudor Financial Consultants, our motto is ‘making the complicated simple’. We’re here to answer your questions and support you in your next steps towards a brighter future.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
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