How the Coronavirus Covid-19 pandemic is affecting the mortgage market
These are strange and worrying times for everyone, from where we were a year ago to today it isn’t easy to contemplate just how much our lives have changed.
No-one has escaped the change to our lifestyles and general day to day activity. This includes the financial services world and specifically our business of arranging mortgages for house purchases or raising capital for home improvements and even debt consolidation.
The mortgage demand
Now that we are fully back in our Covid secure office, we are seeing a pent-up demand for mortgages, including first-time buyers, Buy to let and bridging loans, which help clients keep hold of their dream home even when the property chain begins to breakdown.
However, whilst the demand for mortgages remains high, the whole of market lending panel (including banks, building societies and specialist lenders) are struggling under workloads as their staff still work from home, and some are still on furlough. They have also tightened their lending criteria and are limiting lending to applicants with more deposit than pre-covid. Questions are also being asked with regards to furlough working, and how income has been affected for potential customers.
How we help you get a mortgage
The good news is that here at Friends Capital, we have a team of specialist mortgage advisers that are continually kept up to date with developments in the Mortgage world. While, we guarantee that we will be honest about the timescales and chances of a mortgage approval, given current circumstances, it is possible that a greater deposit may be required (15%+) in order to get a decision in principle. In these situations, we will often advise you to re-apply once you are back on full pay with your employer or for those with a low credit rating, we would recommend waiting, as credit scores often increase with time. For those who may be struggling with payments and a bad credit rating, we are happy to provide a few tips on how you can manage finances and increase your credit score.
We are an independent mortgage broker in Sheffield that operates nationwide and can accept confidential enquiries via phone, email or our secure customer portal.