Mortgage planning guidance post lockdown

Mortgage planning during coronavirus Covid-19 lockdown

Mortgage planning advice

What should I do if I struggle with my mortgage payments?

If your earnings have been affected by COVID-19, and this makes you worried that you may not be able to pay your mortgage payments, the very best thing you can do is to talk to your mortgage advisor.

There are many alternatives and solutions to this issue, so you don’t have to worry that your property will be repossessed immediately. Speaking with you’re a financial advisor can help put your mind at ease, set up mortgage planning and reduce financial stress.

Is a mortgage payment holiday really a thing?

Yes, it is possible to apply for a mortgage payment holiday (until October 31st). However, there are some vital things you need to keep in mind before you apply for it. First, the holiday is not free cash, and you will undoubtedly need to pay it back. Secondly, this could increase your mortgage payments overall.

So, before you make a decision to apply for a mortgage payment holiday, please make sure that you can afford to pay back the recalculated monthly mortgage payments.

Is it possible to apply for a home loan now?

Yes, lenders are continuing to approve mortgage applications. Some lenders started offering a 90% LTV mortgages that require only a 10% deposit. However, in most case scenarios, a 15% to 20% deposit of the residential property purchase rate is more likely to be needed. It’s worth noting that furlough income is an acceptable earning for a mortgage application and can be considered as part of the lending institution’s affordability checks.

Is it a good time to consider remortgaging?

It’s worth to consider remortgaging or changing to a new product as this could help save you money. Getting on a loan on provider’s variable rate is generally much more costly than new products.

If you consider remortgaging, mortgage planning is the key, so it’s best to speak to an advisor that will be able to understand your needs and tailor them to your financial circumstances.

Best advice for buying or selling a property during COVID-19

Both residential and commercial property market is coming out from lockdown stagnation. Now is the time to get all your documents together and talk with a financial advisor, whether you’re buying or selling a property. GTP team can help you identify the most suitable mortgage deals and also assist you with your application to avoid any issues or delays.

Call or email us to schedule a free initial advice regarding your mortgage planning.