If you want to move quickly call us for mortgage advice
Tuesday 11 August, 2020
Mortgages are difficult to agree – call our mortgage broking team now for advice on 01707 872000.
With all the market incentives now is a good time to purchase a home
With the property market booming since the re-opening of the property market and the stamp duty cuts, one interesting topic at the moment is mortgages. Now with all the incentives to buy and with mortgage rates being so low it has never been a better time to purchase a home, but unfortunately it is also the most difficult time to obtain a mortgage.
Call our mortgage advisors on 01707 872000 and we can help you obtain your mortgage.
It is proving difficult to get a mortgage agreed as 5% deposits are all but non-existent apart from the help to buy scheme which is only applicable for new builds. Even with a 10% house deposit there are limited mortgage lenders offering products, so even though it is a good time to buy, especially for first time buyers it is also the most difficult time to purchase a home and agree a mortgage.
If you are self-employed call us as we can offer personalised mortgage advice
The other major issue with mortgages is currently centred around self-employed individuals. This group will have their business bank accounts scrutinised to see if they have been able to maintain their level of income during the current pandemic.
If you took the government loans it is more difficult to obtain mortgage finance
It has become apparent that if you have taken the government bounce back loan it is very difficult to obtain finance, so we are encouraging our clients to talk to us first before taking any help from the government.
Some self-employed businesses have been fine during lockdown and have not needed the governments loans, but other businesses might not have survived without government help.
Half of home buyers denied a mortgage during the pandemic
It is important to understand your own personal situation to see if now is the right time to obtain a mortgage as it is so difficult to organise. Given the situation it should come as no surprise that 50% of recent prospective home buyers who had a mortgage agreement in principle were denied a mortgage when going through to full application (source Butterfield Mortgages survey). Therefore, it is very important to make sure your mortgage approval is up to date and you aren’t relying on mortgage advice that was given to you before the pandemic.
‘Overall the property market is booming, and the stamp duty cuts have helped this. It will be interesting to see if this is a short-term bubble or a long-term trend. A lot will depend on how the pandemic progresses and the number of cases going into the winter. One thing is clear is that mortgages are more heavily scrutinised especially for the self-employed, so it is important you seek mortgage advice early and make sure you can borrow the finance you need.
Why choose a Thomas Oliver mortgage broker to progress your mortgage?
Vishal Gulrajani, Financial Planner and mortgage specialist in Cheshunt and Goff’s Oak continued:
‘At Thomas Oliver we review your individual personal circumstances. We go through bank statements, income and credit with you so we can make sure no issues arise when you have found your dream property and are ready to move home. Please remember a mortgage agreement in principle even a month old will have no relevance today as the mortgage market changes every day as the world’s outlook changes. Mortgage lenders have adapted to the new world we live in and we are recommending our clients call us on 01707 872000 so our mortgage brokers can advise on how you can adapt too. Our mortgage broking team at Thomas Oliver works with clients across North London, Essex and Hertfordshire. We regularly liaise with mortgage lenders, so we are well placed to know what is happening in the mortgage market and can offer you expert mortgage advice at all times.’
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments.