With the COVID-19 situation, Enable’s IFAs of Bishop’s Stortford know that lots and lots of mortgage deals have disappeared. Halifax, BM Solutions and Scottish Widows who are all part of the Lloyds Banking Group have removed all residential mortgage deals available at above 60% LTV for purchase or remortgage. Andrew Montlake, managing director at broker Coreco, described this response as a “flight to quality” with lenders unsurprisingly wary about risk.
At the moment most lenders can’t conduct physical valuations so are relying on automatic valuation models instead. Essentially these are computer algorithms that give an idea of what a property is likely to be worth. These models have become more reliable but there is a limit to which lenders feel able to trust and that seems to be the 60% LTV point.
Also, there will be plenty of you out there on fixed-rate mortgages that are about to mature, pushing people onto the far more expensive standard variable rates lenders charge. Ordinarily, you could move to a new, cheaper deal but plenty of you may now find yourselves stuck in limbo, potentially stuck on that SVR, paying more than they need to, at a time when incomes are under even more pressure than usual.
If you are stuck in Mortgage limbo struggling to make a decision or feeling forced to request a mortgage holiday Enable’s IFAs in Bishop’s Stortford can help you look at your options to try to find lenders whose doors are still open. Due to the impact from the COVID -19 virus Enable are continuing their free mortgage applications for remortgages.
Essentially the first mortgage meeting will be free. Up until 31st of May, 2020 they will waive their normal fixed fee of between £149 to £299 payable, depending on the level of research needed and the type of mortgage applied for, to help you find what you need to get through the next few months with your mortgage.
Your home could be at risk if you do not keep up your mortgage repayments.