Richard Grigg is one of TMQ’s Mortgage Advisors, below he gives us the latest on how COVID-19 has impacted the mortgage market and not necessarily in a bad way.
Light at the end of the tunnel
With lockdown having been in force for the past 5 weeks there is finally light at the end of the tunnel. Therefore, I thought it might be useful to give a quick wrap up on the mortgage market and what’s out there right now and quash some of the doom and gloom rumours kicking around.
Regardless of what you read, mortgage rates are still some of the lowest we have seen in recent times. Consequently, both 2 and 5 year fixed rates are still showing great deals and trackers taking real advantage of the record low base rate, with more lenders now offering these trackers with no early repayment charges, you can take advantage of a record low rate with the reassurance of being able to jump to a fixed rate without a penalty should rates look to rise.
There are fewer lenders in the higher loan to value market with 75% being the cut off for many, however, the market is growing by the day as more lenders find ways to comfortably confirm the value of a property. With valuers using more of the online and electronic tools available to them, we are seeing lenders coming back to the market at 80%, 85% and even 90%!
The Mortgage Market
The mortgage market isn’t what it was 6 weeks ago, but neither is the nation. Given all the challenges that are out there at present, money is still being lent and people are still getting the homes they dreamed of.
If anyone has any questions or topics they would like to see covered, send us a message and we’ll try to cover it in the next update.