As you can imagine we have seen many changes in the mortgage market over the last few months. Going back to the beginning of lockdown, we saw some drastic changes with some lenders temporarily cease lending and others restricting loan to values to 60% and below.

This was partly to allow lenders to deal with the extremely high level of requests for payment holidays as call centres across the country and indeed world, were forced to close. The other reason for the restriction was also down to the fact that physical valuations were unable to take place at that point. Thankfully, valuations have recommenced and lenders and surveyors are working hard to clear the backlog. As a result, loan to values have relaxed slightly. There is still a way to go before we get back to pre lockdown levels but it’s all a step in the right direction.

One of the positive things to come out so far is the way that lenders have been able to innovate and adapt to the current normal. Automated and desktop valuations are being utilised far more than before, which has enabled applications to progress and will make the process more streamlined and efficient going forward.

For those employed clients that have been furloughed, lenders will still consider applications, but they will base their lending upon the reduced income you are now receiving.

Lenders are also asking additional questions as to whether you have been affected or are likely to be affected by Covid 19.

For the self employed, some lenders are asking to see business bank statements, in addition to personal statements, to help them determine whether your business is likely to be in a position to continue to trade at similar levels to the past.

There is no exact science and it is very much down to underwriters discretion which is where using a broker is essential. I know the lenders criteria inside out and am aware of how each lender is currently working.

In summary, despite the changes, the mortgage market is still very much open for business and most importantly looking to lend. With rates at record lows and with no sign of this changing anytime soon, it is still a great time to lock into a competitive rate.