Is the UK mortgage market in lockdown?
This question seems to come from the back of some of the sensationalist headlines in the UK government explicitly announces it, we are operating business as usual. Mainstream media currently that the UK mortgage market is in lockdown.
I can confirm it is NOT a mortgage lockdown.
On the back of the government’s announcement for everyone to stay at home, some specialist lenders have decided to stop lending during the COVID-19 pandemic. Some mainstream lenders have removed certain products, mostly those around the higher loan to values as surveyors are unable to carry out physical inspections on properties at this current time.
A significant reason for mortgage products to be removed from the market temporarily is to alleviate pressure to ensure the applications which were in before the lockdown can be processed promptly.
Like most of us, the vast majority of the staff at these lenders are now working from home. This means that mortgage lenders have had to take urgent action to process existing and new mortgage applications in a timely manner.
As an example, one mainstream lender, who typically can process 300 mortgage applications a day saw an enormous surge at one point last week they had over 900 applications sent in. This can only have a knock-on effect in processing times.
Hence, the action by lenders is mainly to ensure we, as borrowers and mortgage brokers alike, receive some form of normal service.
This is another deciding factor for mortgage products to be removed for a short period, whether it’s a purchase or a remortgage.
As a final note, mortgages are very much still available; it is all dependent upon your individual circumstances as it always is any further questions do not hesitate to get in touch.