01 April 2020
Coronavirus crisis puts housing market on lockdown, or so they say!
The C word is now everywhere. Only last month, we were celebrating a healthy start to the year with significant growth expected in the Housing market. ''Spring'' forward to today and uncertainty looms!. Some lenders are having to halt new lending altogether or drop their lending limits as they turn their attention and resource to supporting existing customers. Leaving many borrowers singing ?? we're all going on a mortgage holiday, no more worries for three months or two...??.
Our view is that as lenders start to see a slowdown in the mortgage holiday requests, they will be able to spread their resources back out to their lending arms and we should all see a return to 'normal', or at least something near to normal.
The main issue lenders are facing is that they are not able to carry out physical valuations. The government has pretty much banned all but essential work, and visiting someones house to determine the value is not classed as essential. This is mainly why LTVs have dropped and only lenders who have a robust automatic/desktop valuation system are able to lend.
Once valuers can get back out, or once the lenders start thinking outside the box and perhaps start using drones (our idea, not yet copyrighted!??), we should see the higher LTV products creep back into the market.
Our message therefore to everyone is simple. ''This is a temporary set back, normal service will resume''.