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Covid Faq

Frequently asked questions during lockdown 20th May 2020

We hope that you and your families are all keeping safe throughout lockdown.

Mortgages4Plymouth have been as busy as ever helping our new and existing clients with a whole variety of different things. We've been talking to you, to make sure you have the support you need, when you need it. Our team have been looking after your remortgages, house purchases, protecting you and your families in the event of the unforeseen happening and just simply chatting to you to help you work out what you are looking to do next.

There are a few questions in relation to how the market has changed that we have been asked a few times so we thought that you may benefit from seeing them.

Q) Why have lenders withdrawn mortgages for buyers with a 5% deposit and when do we expect this to be back?

A)

Lenders withdrawing these mortgages is due to a variety of reasons linked to Covid-19.

The main reason is that there has been a prolonged period where valuers were unable to physically inspect properties. On mortgages where the mortgage is lower in proportion to the value of the property, lenders are unable to proceed without a physical valuation. With lower deposits they need to more accurately assess the value of the property to process the application.

With regards to when these will be available again, we have no fixed dates yet from lenders, however signs over the last couple of weeks have been really positive and we will be sure to let everyone know as soon as we can. Lenders as of today are currently prioritizing their back log of existing applications and valuations before re introducing these mortgages. Some 10% deposit mortgages are available. After a full personal review of your circumstances, we can advise if these products will be suitable or available to you.

Q) There have been rumours that the government are considering a ‘stamp duty holiday’ to kick start the property market, have you any further information on this?

A)

We have heard nothing from any official sources on this, just a few rumours in the media, but if we hear anything, we will get the full information out as soon as we can.

Q) I have taken out a ‘payment holiday’ on my mortgage, what does this mean?

A)

Due to Covid-19 borrowers have been able to apply for a payment holiday for up to 3 months without impacting their credit score. During the agreed payment holiday you do not have to make your regular mortgage payments, these payments are instead added to your mortgage balance. Then at the end of your mortgage holiday your mortgage payment is reassessed to include the amount that has been added. You must seek approval from your lender to do this. This is a useful tool if your finances have been temporarily impacted due to Covid-19, however with any borrowing that is being secured on your home, you should take careful consideration before you proceed. Your home may be repossessed if you do not keep up with repayments on your mortgage.

Q) Are buy to let mortgages still available?

A)

Yes, buy to let mortgages are still available. Due to these mortgages generally being of a loan to value of 75% or lower, they are currently in a similar position to what they were prior to the pandemic. Please ask us for advice which will be personalized to your circumstances.

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