Now that the property market has restarted again, lenders are busy working through the backlog of mortgage applications they put on hold when physical valuations had to cease during lockdown.
Following a relaxation of the rules earlier this month, surveyors are now able to enter properties to conduct physical valuations if an automated valuation is not possible. They must make sure they remain socially distanced from homeowners, and may not enter any property where a member of the household is self-isolating or showing symptoms of coronavirus.
Homebuyers or those looking to remortgage whose applications had to be paused should soon be contacted by a surveyor looking to book in a valuation.
Before attending a property, your surveyor will want to check no-one has got the virus, or is displaying symptoms of it. A two-metre distance must be kept at all times when a surveyor enters the property, but ideally and if possible, homeowners should stay out of the building while the valuation takes place. Homeowners should give their properties a thorough clean before a surveyor visits and surveyors should wear the appropriate personal protection too, such as latex gloves and a face mask, to help minimise the risk of the infection spreading.
Higher loan-to-value mortgages reinstated
The fact that physical valuations can now proceed has meant that growing numbers of lenders are re-introducing 90% deals. Lenders include Virgin, Yorkshire Building Society and its intermediary arm Accord have all returned to the 90% loan-to-value market in recent days, providing more choice for those with smaller deposits.
Charles Mungroo, senior product manager, mortgages at Yorkshire Building Society, said: “We hope that by being able to offer higher LTV products within a week of physical valuations restarting, we can demonstrate our commitment to homeowners and those looking to get started on the property ladder to ensure they have a range of options to suit their needs.”
Many lenders have been increasing their range of products in recent weeks. In many cases that will see them offering deals up to a maximum 80% or 85% loan-to-value, although this may change in weeks to come. Some smaller lenders continued to offer 90% and even 95% LTV deals during lockdown but will be limited on the volume they can take, so some will still pull back their offerings as and when they need to.
If you’re not sure which 90% mortgage is right for you, contact L&C and we can talk you through the options available to you and help you find the best possible deal.
Mortgage market update - Lenders re-introduce deals