While the pace with which the housing market re-opened in mid-May took a lot of people by surprise, the demand and activity which followed was predicted by many industry experts. It is believed around 370,000 property deals were placed on hold when the market was paused, so it was inevitable many of these people would be keen to resurrect the deals as soon as it was possible. People also want to find affordable rate mortgages.
Also, while there are many reasons to move home, a change in employment status or relationship are common factors. Many people in lockdown might have experienced one of these changes, resulting them in looking to move as soon as they can.
There has also been significant movement in the mortgage market. MoneySuperMarket indicated a spike in mortgage searches when the market re-opened. The popular comparison site said they experienced an increase of 18% in week-on-week visitors of people looking for mortgage deals the day following the re-opening of the market.
Emma Harvey is the Mortgage Expert at MoneySuperMarket, said; “The prospect of the housing market starting to open up again will be welcome news for many would-be homeowners and movers, however, like many aspects of life in the COVID-19 era, it will be a far from straightforward recovery. Underwriting and approving mortgages is still a hugely manual process which requires workers from across the industry being able to work together. Not just the lenders themselves, but also brokers, valuers, estate agents, councils and solicitors.”
Speak to experts who can guide you in finding affordable rate mortgages
It is best for you to speak with experts when looking to apply for a mortgage, or when you are considering your options in the housing market.
Emma Harvey discussed the challenges faced by applicants dealing with the COVID-19 pandemic. Emma said; “Banks will always ask for the last three months of earnings, with some lenders offering more flexibility around exceptional circumstances than others. However, those people who are currently furloughed should not suffer any adverse credit or change in risk profile. Consumers just need to be honest about the situation and if in doubt talk to their lenders or broker for support. “
The deposit remains a crucial component of the mortgage application
Each household has their own circumstances to manage, and your situation will dictate what is best for you. This is why you need to find a tailored solution. Emma said; “As always, the larger the deposit you are able to put towards your property, the better. It will bring down your LTV and give you access to the lower interest rates with lenders. If you’ve been able to save any additional funds during the lockdown, this will certainly be beneficial.”
Anyone who is considering buying a home or who is looking for guidance on mortgage matters should be aware the market is operating, and help is available. Each person and household have their priorities at this current time. For some parties, the present circumstances will only reinforce their need and desire to step onto the property ladder.