Should You Get a Mortgage Post-Covid-19?

In 2019, mortgage lending reached a whopping £70 billion in the UK. While it’s unclear how the 2020 numbers will look, Covid-19 probably means it won’t be as high.

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During the height of the pandemic, lending decreased as social distancing restrictions slowed the industry down. However, as we come out of lockdown, lenders will be more eager to lend, which is great news if you’re thinking about moving home. So we’re here to give you the lowdown on what’s going on in the mortgage industry right now.

Has the mortgage market changed during the lockdown?

Many lenders pulled their rates during the lockdown. The lack of physical offices, which led to an increase in remote working, was one of the primary reasons for the pull. This meant speed and customer service reduced, and lenders couldn’t predict applications-to-offer timescales – something that ranks high in importance for anyone buying property.

The lockdown also meant valuers were unable to visit properties, which further slowed down processes. A mortgage valuation is different from a market valuation. And, while desktop valuations were performed in some cases, they weren’t watertight enough to work for every property.

As restrictions on the lockdown ease, a growing number of lenders are issuing new rates and re-entering the market. They have had time to put measures in place and have created secure safe working environments. 

Is the stamp duty holiday affecting lender criteria in the mortgage market?

From a lenders’ perspective, the stamp duty holiday shouldn’t have a major impact – though it couldn’t come at a better and could provide buyers with extra cash to spend on bricks and mortar. The surplus could lead to a lower loan-to-value (LTV), which would equate to a decreased rate. Or it could see buyers opting for high-priced properties. Both scenarios are beneficial to house buyers around the UK.

How likely is it that I can get a 95% LTV mortgage at this time?

The 95% mortgage market still hasn’t recovered from Covid-19. However, the mortgage market is changing daily, and things could change for the better very soon. Watch this space…

Can I get better rates if I go to lenders directly or should I use a mortgage broker?

Over the last 10 years, many lenders have gradually moved away from direct lending and have moved into the broker market. Brokers, for example, write more business for Natwest and Halifax – who are some of the largest lenders in the UK – than they write themselves.

This often results in mortgage brokers being offered better products for you to take advantage of than if you went directly to the lender. Borrowers also get access to a more substantial chunk of the market with a broker, which isn’t the case if you go straight to the lender.

About Mashroom Mortgages:

Mashroom Mortgages gives our clients access to expert mortgage and protection advice. We have access to over 12,000 mortgages from 90+ lenders so we can find the right mortgage to suit your individual needs, whether you’re a first-time-buyer, looking to invest in a buy-to-let or planning to remortgage.

The expert advice we offer, combined with the volume of mortgages that we arrange, places us in a very strong position to ensure that our clients have access to the latest deals available and receive a first-class service.

We will take care of everything from explaining all of your options and helping you select the right mortgage, to choosing the most suitable protection for you and your family and handling the whole application process. That’s right – that means less paperwork for you! And the very best part is that Mashroom Mortgages offer free advice, so that’s a big saving that you can make a very expensive time.

Book a call today to take your first steps!

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Mashroom is an appointed representative of Adelphi Insurance Brokers Ltd. Adelphi Insurance Brokers Ltd is authorised and regulated by the Financial Conduct Authority (FCA). Their Financial Services Register number is 594620, with permitted business activities being introducing, advising, arranging, dealing as agent, assisting in the administration and performance of general insurance contracts and credit broking in relation to insurance instalment facilities. You may check this on the Financial Services Register by visiting the FCA’s website, or by contacting the FCA on 0800 111 6768