Ralph Evans, Financial Services Director, Capital Private Finance
With a changing mortgage market, it can be an unsettling time to be in the process of applying for a mortgage. News headlines can make it seem like the industry has shut down and your efforts and money have been lost. However, for many that’s not the case, and it’s simply that your mortgage journey is on hold, rather than coming to an end.
Thinking of submitting a new application?
An important part of being able to provide a suitable mortgage offer is an accurate valuation of the property. In the current climate, physical valuations are not possible due to limitations imposed by the government. Many lenders are therefore not currently accepting new applications, while others have adjusted their products accordingly. Contact your adviser to discuss your options going forward in more detail.
Already have a mortgage offer?
If you’ve already received a mortgage offer from a lender, but have not exchanged contracts, then do not panic – your application is more than likely still viable, but will likely be delayed. Lenders are experiencing a high volume of enquiries and so your application may take longer to be assessed. If you have questions as to how a change in your circumstances may affect your mortgage offer, then please contact your adviser.
In between exchange and completion?
If you’re waiting to complete on your mortgage it can feel like you’re stuck in limbo. The good news is you’ve signed contracts already and so are unlikely to lose your mortgage or your house. Lenders will want to ensure you complete on your mortgage and so will do all they can to make it happen for you. Assuming that your circumstances haven’t changed, this will probably just mean a delay to your mortgage completion. Many lenders are now offering three month extensions on mortgage offers to help you with this. Contact your adviser to find out what measures your lender has put in place for you.
Are remortgages and product transfers affected?
The remortgage and product transfer markets have been affected in part, but remain competitive which means there may still be attractive options out there for you. It’s also worth bearing in mind that difficulties in obtaining physical property valuations may delay certain products in delivery. For a full assessment of the best choices for you, contact your adviser.
Mortgage Payment Holidays
Many lenders are now offering mortgage payment holidays if you’re struggling to pay your mortgage in the current environment. It’s important that you follow the correct procedures laid out by your mortgage lender instead of simply cancelling direct debits or not paying. Your adviser can take you through the next steps for you if you have any further questions.
Review what protection you have in place
While you are assessing your mortgage choices, now may be a good time to take a closer look at what insurance and protection policies you have in place to protect the things you value the most. Our adviser can take you through these options alongside any mortgage enquiries you may have.