when to get a mortgage 2020

mortgages are being withdrawn from the market

Due to the current economic climate Mortgage Lenders have recently been tightening criteria, increasing the minimum deposit you require or withdrawing Mortgages altogether.

So why are Mortgages being withdrawn from the market by Lenders? And when is the best time to get a Mortgage in 2020, in these unprecedented times?

The reason is three fold really.

three reasons why banks and building societies are withdrawing mortgages

mortgage repayment holidays

The first thing the prime minister announced to help ease financial pressures to the public. Was that all Mortgage holders could ask for a break on their repayments for up to 3 months.

Although repayment breaks aren’t a new thing. In fact, most Mortgage Lenders offered this before.

The Prime Minister advertising it to the nation was always going to result in Mortgage Lenders being inundated with Mortgage Repayment Holidays.

This has meant that Banks and Building Societies have had to pull staff from all areas to try and meet the demand of processing these. Thus meaning they are unable to process new applications.

Mortgage Holiday rules are still the same. Lenders will try their best to ascertain whether borrowers genuinely need the repayment break.

If it’s clear that they do not need the repayment break, they are quite within their right to refuse this.

Remember Mortgage Holidays should always be a last resort and not used just for the sake of it. You may struggle in the future to get one if you’ve had one or more in the past.

lenders are unable to establish applicants sustainable income

Lenders are fully aware that a lot of the general public, whether employed or Self Employed, are likely to be financially adversely affected either now or in the near future by Coronavirus measures bought in by the Government.

This means Lenders are unable to establish whether Mortgages which look affordable to applicants now, are going to be affordable in the near future.

lenders are unable to complete physical valuations

Due to the Coronavirus Lockdown, Mortgage Lenders are unable to complete physical Valuations or Surveys on Properties.

This means they are unable to check whether the property fits the lenders criteria and whether the lender agrees with the price you are paying for the property.

For higher loan to value cases, this poses a huge issue as this is an integral part of assessing a Mortgage Application.

can i get a mortgage in 2020?

Yes, for some Banks and Building Societies it’s business as usual. Many other Mortgage Lenders are still lending but have just increased the minimum deposit you require.

As Coronavirus fears and the Government imposed lockdown ease. More lenders should return to higher Loan to Value lending.

Don’t panic, if there aren’t any Lenders currently available to you based on your deposit, keep saving. And wait for things to settle down.

Normality will return.

When to get a mortgage in 2020?

If your looking to purchase a property or increase your Mortgage, it’s all down to your income really and whether you have competitive Lenders available to you.

The best thing to do is to have a non-obligatory conversation with a Mortgage Advisor.

We can put you in touch with an Advisor that specialises in your circumstances.

If you’re looking to Remortgage or complete a Product Transfer. There’s no real reason you should delay this, but a Product Transfer may be more suitable now than what it was last month.

Again have a non-obligatory chat with a Mortgage Advisor who will check new Lenders products as well as your existing Mortgage Lenders products.

our mortgage brokers

We work with a variety of Mortgage Brokers which each specialise in different Mortgage Advice areas. When you get in touch, simply select the reason why you’re getting in touch i.e. First time buyer, Bad Credit, Remortgage etc. And we will match you to the Mortgage Broker which Specialises in your circumstances.

 

All of the Mortgage Brokers we work with are whole of market, fully CeMap qualified, regulated by the FCA, have fair fee policies in place and have consistently great reviews.

Get in touch for a free non-obligatory conversation with one of our Specialist Mortgage Advisors for further information on how they can help you.

get in touch for more information

Whether you’re a first time buyer or simply looking to Remortgage. Get in touch with us today, so we can put you in touch with a Mortgage Advisor which Specialises in your case.

We will only put you in touch with a Mortgage & Protection Advisor which Specialises in your individual circumstances. Your information will not be used for any other purpose.

For more information or you would just like to find out more about us, please do get in touch