Corona Virus / Covid 19 and My Mortgage
If you have a mortgage and you are worried about meeting monthly payments due to the impact of Covid 19 .....
Most lenders have now setup the option to apply for a payment holiday of upto 3 months. For most lenders you can apply for the new payment holiday via their online system.
This may not be the best option for everyone, but if you have lost income due to the current situation and feel that you may struggle to pay your mortgage in the coming months you should consider applying for a payment holiday.
Most Lenders have confirmed that this will not affect credit scores or be marked down as a missed payment.
A few things to consider;
• When your payments start again, they’ll be recalculated, and they may see an increase in the monthly payments. Most lenders will calculate this over the remaining term and therefore for people with a mortgage over a longer term (20-40 years) the increase should be minimal.
• The total amount of interest you pay over the term of their mortgage will increase.
• If they have an overpayment reserve, you could possibly underpay instead.
Some lenders have also confirmed
• You may not be able to switch your mortgage to another product whilst on a payment holiday. If they you to switch soon, we can arrange the switch before you request a payment holiday. The PT does not have to have commenced, but simply offered & submitted
• For newly completed mortgages there is no minimum time after completion where a payment holiday can be requested
You can now request your payment holiday online with most lenders saving you holding for hours!
Covid 19 and your new purchase/ remortgage application ....
Most lenders have setup remote working so that underwriting on new/ current applications can still take place.
Most lenders usually require a Valuation of the property they are going to lend on. At the moment Valuers/ Surveyors are not classed as key workers and are therefore subject to the same quarantine rules as the rest of the country. This means physical valuations are unable to take place at this time. Some lenders are currently switching to a process where they are able to progress applications by doing more desk top valuations but this will not be applicable for every property/ application. For some this may mean that the lender keeps your application open until they can carry out a physical property valuation.
In light of the Government advising that where possible people should not be moving ( unless contractually obliged to) some lenders are not accepting new applications for a purchase of a new house. Some are and some have new Loan to Value restrictions.
If your application is already in with the lender they will continue to assess and progress your application as far as possible.
Some lenders are also looking to extend mortgage offers to give people extra time to complete on their mortgage once everything is back to normal.
Should you have any concerns/ questions in relation to this and we are dealing with your mortgage please do not hesitate to contact us.
If your current mortgage rate is due to come to an end and you are worried you maynot receive a new remortgage offer in time what should you do....
This will depend on a number of factors including how much time you have before your current rate is due to end and whether it is feasible to get a new remortgage offer in place. Lenders are currently working hard but slower than usual so it would be best to have a chat with us with regards to the situation and we can guide you from there.
A Product Transfer maybe a good alternative option, this is switching to a new rate with your current lender and this is something we can help with/ advise on. This is normally a much faster process and dosnt normally require any further underwriting or a Valuation.
We can usually apply for this on your behalf on an online system which means you wont have to hold on the phone for hours to your lender.
This may not be an available option if you have started a mortgage payment holiday.
This may not be the best option for everyone. Speak to us and we can advise accordingly.
Contact us; Phone; 07557732482
*This firm does not charge a fee for Mortgage and/or insurance advice
*Your property may be repossessed if you do not keep up repayments on your mortgage