In recent months, we have received an increased number of enquiries from house hunters surrounding how Covid-19 is affecting mortgages. As a trusted Estate Agents, we have reached out to our local expert, Lynn Wallwork, Mortgage Adviser and Director of Real Financial Services to help with your questions.
Your mortgage is probably the largest financial transaction and commitment you are likely to undertake. We believe it is important to seek independent mortgage advice tailored to your needs and requirements. This is where Lynn and Real Financial services comes into play.
Real Financial Services are based at the AJ Bell Stadium in Eccles and for years, they have assisted with securing mortgages for our clients. So, to answer your questions, there was simply no better place to turn to than a professional working with mortgages day in day out.
Question time:
These are currently the most frequently asked questions people are putting to us:
Can I get a mortgage agreed in principle on my full salary even though I am currently furloughed?
Yes, however lenders will only use 80% of the salary when looking into affordability. If you are planning to buy and you will be returning back to your employment on full salary, apply as normal on the normal salary as you are unlikely to be submitted a full application during lockdown.
Should I be taking a mortgage payment holiday and will it affect my credit rating?
If you do not need to take the holiday then don’t. Mortgage holidays are in place for clients unable to meet their mortgage payments. If you take the payment break un-needed, you are only adding the monthly payment onto your current debt which consequently will cost you more money. The government have assured us that it will not affect your credit rating long term. Always avoid a payment holiday if not needed.
I am a first time buyer – will mortgage lending return to normal after Covid restrictions are removed?
Yes, it may take a few months however some high street lenders have confirmed once lockdown is over they will return to normal lending very quickly, this will always be subject to a valuation of the property intended to be purchased.
My mortgage is due for re-newal – should I look to fix for a long term with interest rates being low?
Yes its always advisable to fix the rate for stability. Interest rates have stayed low for many years and the short to medium term is they will not increase, so you can take advantage or very low interest rates and switch over with your existing lender onto a similar rate.
We do hope the above questions and answers have been helpful.
If you are looking to purchase a home, we highly recommend that you reach out to Lynn to see how she can help.
Lynn and her team can be contacted by telephone on 0161 428 9960
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