It goes without saying that the Coronavirus pandemic has had a big impact on the UK economy, as many industries were forced to shut and go into lockdown. The property sector has particularly been a turbulent market throughout the crisis; many lenders have been changing their mortgage application criteria’s and the availability of low-deposit mortgage deals have plummeted. Therefore, in a bid to get the housing market moving, Rishi Sunak slashed stamp duty costs across England and Wales until 31st March 2021, which resulted in 20% increase of property sales in July.
Despite the increase in sales, many lenders across the UK are ‘playing safe’ due to the economic fall-out from coronavirus. Many banks and lenders are tightening up in terms of who they are lending to as they restrict high LTV deals and are voiding applications for those individuals who have been on furlough, as well as now seeking for additional supporting documentation for applications.
How a Mortgage Broker can help you get the best mortgage deal
Picking the right lender can have a significant impact on the terms of your home loan, including the amount of interest you’ll pay over the years. The COVID-19 pandemic has caused a lot of confusion in every industry, and the home loan market is no different. There’s plenty of misinformation floating out there online, which can make the entire application process extremely confusing.
Getting advice from a mortgage broker is now more important than ever before. A mortgage broker can help you sift fact from fiction, and provide you with accurate information regarding home loan products, fees, and interest rates. A broker has access to over 30 different lenders in their lending panel, giving you access to the best deals in the market. This can save you thousands, or even tens of thousands in the long run. If you apply directly with a lender without understanding these changes, it could result in a delay with your home loan application. Worse yet, you may risk not getting approved altogether.
Need friendly advice?
Mortgage brokers are legally required to work in your best interest — not in the interest of the bank or lender. At Cornerstone Finance, we will work with you to understand your goals and your financial situation, in order to provide the best product to meet your needs. For advice on your mortgage, contact us today.