Top mortgage tips during Covid-19
Given the situation in the UK with regard to the outbreak of COVID-19, the Government are urging those involved in home moving to be flexible given during these unprecedented times.
For home buyers there’s no requirement to stop transactions, but the guidance to stay home and away from others still remains in these circumstances. The announcement of the UK-wide lockdown will no doubt have added a greater burden to those who are planning to move or due to re-mortgage and the uncertainty may have left you feeling like you are facing quite a dilemma.
However, house purchases are still continuing as is remortgaging during the current situation.
Here we provide an overview of the current position and what you should be considering:
1. Extension of Mortgage Offers for home movers - Some lenders are extending the mortgage offers for home movers (and first-time buyers) by a further three months where parties have exchanged contracts. Some lenders are looking to introduce this for other clients that have not yet exchanged contracts but please speak to your Financial Consultant or lender for clarity on your lenders position
2. Remortgaging – re-mortgage products are still available despite what you may have read in the press recently. This is actually a great time for homeowners to potentially save money on their mortgage with some low rates currently available
3. Mortgage Payment Holidays – whilst these are available for those who most need it. Most lenders with credit reference agencies have agreed that this will not affect your credit score however the holiday months and interest will be added to the term of the mortgage
4. Buy-to-let – now set-up for payment holiday requests which helps for landlords whose tenants cannot make their rent payments due to COVID-19 related financial problems
5. Mortgage applications for furloughed workers - If you have been furloughed and are currently on the government Job Retention Scheme, you may be concerned with how this may affect your ability to get a mortgage. If you are in the process of purchasing a home or looking to remortgage currently don’t worry - there are lenders who are continuing to accept mortgage applications from those who are furloughed using income received through the scheme and use that for the affordability assessment
6. Current mortgage offers - If you already have a mortgage offer in place, speak to your lender to check that the offer is still valid and that the level of borrowing you’re taking on remains manageable if your job situation has changed
It is a fast-evolving situation as we all adapt to the new realities created by the Covid-19 environment. You should ensure you find the best option for your circumstances and seek expert advice.
If you do require any further information, we can help when the time is right.
YOUR MORTGAGE IS SECURED ON YOUR HOME. YOUR HOME MAY BE REPOSSESED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE