Property valuer return set to ease pressure on mortgage market

Banks and building societies have confirmed their property valuers will return to work following recent government communications and guidance from the Royal Institution of Chartered Surveyors.

Santander and Halifax are set to resume physical valuations as of Monday 18th May while HSBC has already started booking in physical valuations starting with the oldest applications. 

Skipton for Intermediaries is resuming physical property valuations for both residential and buy-to-let applications in England, while Accord Mortgages says all new applications will be subject to a physical valuation where possible. Nationwide Building Society plans to clear its valuation backlog by June 12.

Banks and building societies have agreed lots of mortgages during the lockdown by using their automated property valuation systems, although a significant number of mortgage applications have been put on hold or agreed in principle. The applications being held will not go through until a valuer confirms how much the properties are worth.  

While the lockdown has clearly hit the mortgage and property markets, the lenders are still keen to provide mortgages and they continue to have a strong appetite to lend. Some lenders may even reduce the price of their fixed rates while the cost of funding them is so cheap. 

Lenders improving acceptance criteria  

Mortgage lenders have either returned to the mortgage market or reduced the size of the deposit applicants need to qualify for a mortgage. 

Nationwide for Intermediaries, Halifax, Coventry Building Society and Santander all offer 15% deposit mortgages, and TSB has lowered its deposit requirements for property purchases from 25% to 20%.  

Barclays has reinstated its buy-to-let remortgage products for those with 25% equity in their property and specialist provider InterBay Commercial has resumed lending. Accord Mortgages has lowered the size of the deposit it requires for property purchases from 25% to 15% and raised the maximum property value it will accept from £1 million to £2 million. 

It is worth noting that more of the lenders are asking self-employed applicants to provide their most recent bank statements so they can access their company trading figures. More of the providers have also stopped using as much bonus or commission income and they want to know if applicants have been furloughed.

Lenders still providing great rates

Mortgage lenders are still providing great rates for many borrowers purchasing a property or remortgaging especially if their income has not been seriously affected by the virus.

Trinity Financial’s brokers have access to a selection of lenders offering sub-1.25% two-year fixes for property purchase and remortgages, as well as seven lenders offering sub-1.5% five-year fixes.  

HSBC for Intermediaries has many of the most competitively priced mortgages across the market and a range of fixed and tracker rates. The bank’s lowest rate is as low as 1.19% and it is fixed until 30 September 2022.  

HSBC's mortgage has a £999 arrangement fee and applicants will need a 40% deposit to qualify. After the fixed-rate, the mortgage reverts to the lender’s 3.54% standard variable rate and the APRC is 3.2%. 

We recently wrote a blog to help buyers through the process of securing a property or mortgage with hints and tips. Click here to read it. 

Trinity Financial, a preferred partner of Winkworth, is one of the UK's leading independent mortgage broker firms. The team have strong relationships with all the providers and will scour the market to find you the very best deal. Trinity deal in all manner of products from first-time buyer to £multi-million portfolios and overseas mortgages. The guys also facilitate exclusive and often complex deals that can't be found on the high street.

If you’re looking for a mortgage or require some advice please do not hesitate to get in touch with the team at Trinity.

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