Some Valuable Advice at this Trying Time

We have worked for many years with an independent financial advisor called Jonathan from Myne & Ure and he has provided us with some useful information which we found helpful, so have chosen to share it hoping you might as well.

Many of us will have concerns at this particularly trying and uncertain time and we’ve spoken to Jonathan for his general understanding of the mortgage climate currently, the following information is his professional opinion which he has shared with us – please note that this is not advice provided by Peter Joy Estate Agents, nor can it be relied upon as a replacement for individual financial advice. If you would like to discuss your own mortgage needs further please contact us at hello@peterjoy.co.uk and we will be happy to pass your details onto Jonathan.

Mortgage Repayment Holidays

Following Central Governments announcements last week concerning mortgage repayment holidays for up to 3 months – Lenders have been overwhelmed by enquiries and we are aware that hold times when contacting Lenders have been / can be up to 10 hours due to the unprecedented number of calls received.

So, for general guidance – we understand that:-

  • If your mortgage payment due date is more than 10 days away – firstly check your lenders website and contact them via email / their online forms to request / enquire about mortgage payment holidays;
  • Most lenders have now set up specific contact emails, webpages and online forms to handle – most – enquiries.
  • If your mortgage payment is due in the next 10 days – and you believe that you may have a problem meeting your mortgage commitment – due to the implications of the coronavirus / Covid-19 – then the advice is contact your lender via the call lines on their respective websites – and hang on – for a while …maybe grab a cuppa and a good book …
  • We are unclear how the mortgage repayment holiday payments will be met in the future;
  • We anticipate that Lenders will roll up the missed payments and add this to your mortgage debt then amend your monthly payments accordingly. However, we would also anticipate that this aspect will be a work in progress for lenders particularly if the situation extends beyond 3 months.

Please note that it has been indicated / suggested that borrowers who take up the mortgage repayment holidays may be denied the chance to switch onto better rates until after their payment break ends by some Lenders. Please ensure that you ask your Lender what the implications of a mortgage repayment holiday will be for you.

If you have a current Mortgage Application

Due to the administrative impact for Lenders following the Mortgage Payment Holiday announcement Lender processing times and Service Level Agreements are unlikely to be maintained at this time.

With reference to valuations – from the 24th March 2020 – some valuations firms / panels have indicated that their valuation services will be on hold / deferred for 3 weeks when the situation will be reviewed nearer the time.

Mortgage Interest Rates

At this time, we are also fielding questions regarding the recent Bank of England Base Rate (BBR) cuts.
Please be assured that we are maintaining a watchful eye on the marketplace – however – to date the substantial BBR rate reductions have not fed through to substantial cuts in fixed rate products. It has led however led to the withdrawal – or increase – of rates applied to tracker rate mortgages.

Lenders are already under financial pressure brought on by the Pandemic as well as marginal yields achieved from historically low interest rates –  so at this time – as such – the marketplace  is not expecting a substantial drop in fixed rates. The general movement so far has been to withdraw high loan to value products with some rate increases and limiting the loan to value for new build borrowing.

However, we will remain watchful.

Life Insurance

We understand that many of you will be worried about meeting financial commitments at this time and may be reviewing your costs and bills. Life cover can sometimes be a casualty at times like these.

Please be aware that if your current cover lapses, when, and if, you wish to renew – we are seeing the appearance of the questions relating to COVID-19 and may result in additional underwriting.

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