Your top 7 post lockdown mortgage questions answered
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Corey Whelan, director of Cambridgeshire Money in Huntingdon, explains what support is available to those in need of guidance with their mortgage post lockdown.
Q: What should I do if I’m worried about making my mortgage payments?
A: If your income has been affected by coronavirus and you’re worried about making your monthly mortgage payments, the best thing you can do is talk to your mortgage lender.
People often jump to the worst-case scenario of potentially losing their home. However, speaking with your lender can help put your mind at ease. They can reassure you and explain what options you have to ease the financial pressure.
Q: Should I apply for a mortgage payment holiday?
A: If you’re considering applying for a mortgage payment holiday, there are some key things you should understand first. Most important is that the holiday is not free money, you will need to pay it back. This could increase your mortgage payments overall.
It’s important to check that you can afford the new amount before making any final decisions.
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Q: Can I apply for a mortgage now?
A: Lenders are continuing to accept mortgage applications. Some lenders have dipped their toes in the water with a 10pc deposit but that seems to be very limited. A 15 to 20pc deposit of the property purchase price is more likely to be needed. Furlough is an acceptable income for a mortgage application and can be considered as part of the lender’s affordability checks.
There is still a mortgage market out there. I’ve had calls from people on furlough, who say when things return to normal, they’d like to consider moving and want an idea of what their options are.
Find out what mortgage rates and products are available. Researching your options now may help you save time later down the line and make moving home simpler.
Q: Why should I consider re-mortgaging?
A: Being on a lender’s variable rate is normally more expensive than new products out there. Consider re-mortgaging or switching to a new product as this could help save you money.
We’ll spend time getting to know you, your future goals and understand your financial situation. This way we can find a suitable mortgage product that fits your budget and circumstances.
Q: What advice can you offer someone that’s currently buying or selling a property?
A: The property market is picking up and transactions that were put on hold during lockdown are moving again. Do all you can now to make sure you’re prepared for when that time comes.
Use this time to get all your documents together and talk to an adviser. Make sure you know where things stand, that your mortgage offer is still eligible and that you maintain good communication with the seller’s solicitor.
Check that you can apply to your bank for a mortgage. Sometimes people find their bank won’t accept them due to the type of income they receive, blips in your credit history or questions surrounding affordability.
We can find the best mortgage for your situation and help you to avoid any delays or mistakes.
Q: Should I seek professional advice before making any changes to my mortgage?
A: There are many things to consider and check for when applying for a mortgage or changing your existing one. Speaking with an expert can help ensure you make an informed decision.
We’re always on the end of the phone to answer any questions you may have about your mortgage. We can help you budget and review your bank statements to see where you can save money.
Though it’s important to note insurances are just as important as ever. When reviewing your out-goings, it’s not advisable to cancel things like life insurance. We’ll recommend areas where you can lower cost and better manage your expenditure.
We’re here to help guide and advise those seeking mortgage advice, especially following the events of coronavirus.
Q: How can I get in touch?
A: Call or email us to book a free consultation. Though we’re based in Huntingdon, we can provide services to Peterborough, Cambridgeshire and surrounding areas.
Cambridgeshire Money is the latest branch launched by the Money Group that has 14 brands across the country.
Visit cambs-money.co.uk for more information.
Call 07462746747 or email email@example.com to book a free consultation.