Borrowers that need to re-mortgage could be missing out on savings of thousands of pounds by not moving to a new mortgage deal. Mortgage rates are at their lowest levels following two historic Bank of England base rate cuts. Since the Covid-19 crisis, mortgage lenders have withdrawn many products from the market. The reason for these is due to operational constraints such as mortgage surveys and physical valuations. Lender contact teams have also been under pressure due to the high volumes of calls regarding payment holidays. All of this has placed constraints on lenders’ ability to process new re-mortgage applications, however there are signs that lenders are adjusting processes to overcome these constraints.

 

Large lenders are moving towards automated valuations:

For several years there have been appraisal companies, such as Hometrack in the UK, providing banks with near-instant and automated valuations for residential properties. These services enable banks to cut costs and improve customer service by offering quicker mortgage decisions, sometimes within two minutes.

There are options available for remote valuations / surveys. Photos of a property can be sent to a lender via an app for processing. Alternatively, Valuations are being carried out via remote visits which include a drive-by of the property in a vehicle to assess the information is correct and form the valuation.

The UK’s 10 largest lenders will all use automated valuations on residential mortgages and 8 of these will use this on re-mortgage applications of up to 85% loan-to-value (LTV). Those looking to re-mortgage at higher LTVs will have less choice available.

Using a mortgage broker will help those wanting to re-mortgage – especially for those borrowing at a higher loan-to-value (LTV).  A mortgage broker will find a lender who is more likely to accept a re-mortgage application.

Access to expert insight and knowledge has never been more valuable, for those looking to take advantage of the potential savings from the current interest rates. Borrowers will also benefit from the help of a mortgage advisor knows which lenders can use automated valuations and whether these are applicable to certain lenders along with current processing times.

 

Speak to JP-Finance for peace of mind:

Here at JP-Finance we receive the latest industry news prior to the general public and have the most up to date knowledge on lenders and any lending restrictions and limits.

If you’re looking to re-mortgage, buy or sell your home, or you are worried about the current situation, speak to a member of our team for free advice.

 

JP-Finance (UK) Ltd is an appointed representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading style of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority.

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