GetAgent
  • Compare agents
  • Search by area
    Most popular areas:
    Search by area
  • Tools & Guides
    Tools & Calculators
    Guides & Checklists
  • Blog
Menu
GetAgent
  • Compare agents
  • Search by area
    • London
    • Birmingham
    • Bristol
    • Leeds
    • Liverpool
    • Manchester
    • Nottingham
    • Sheffield
    Search by area
  • Tools & Guides
    • Online House Valuation

      See how much your house is worth - get a free instant estimate of your home's value.

    • House Prices By Area

      Check out house price trends across the UK by postcode or town.

    • Estate Agent Fees

      Find out more about estate agents’ fees, contracts, and the service you should expect.

    • EPC Checker

      Check whether your home already has a valid EPC - for free.

    • Listing Monitor

      Already on the market? See how your online property advert is going.

  • Blog
© GetAgent Limited 2022
  1. Blog
  2. Coronavirus: Will getting a mortgage be more difficult?
Property news
26 March 2020

Coronavirus: Will getting a mortgage be more difficult?

Rosie Hamilton
Writer & Researcher
coins spill out of a fallen over vase

In the past few weeks the situation has changed massively. We’ve seen a bank rate cut, and along with it a cut in interest rates for those on tracker mortgages. Major lenders have also begun to offer 3-month mortgage payment holidays for anyone who is struggling financially as a consequence of coronavirus.

On the other hand, the government has provided guidance which restricts personal movement in order to prevent the spread of Covid-19. The introduction of these restrictions, means it is now very difficult for estate agents, surveyors and conveyancers (whose work depends greatly on in person meetings) to conduct their work as normal. This has a large knock on impact for mortgage lenders.

A house acts as security against a mortgage loan. This means that your home must be worth the same amount or more than a bank lets you borrow against it. If you don’t keep up your mortgage payment your lender can take over your house, and will not have lost any money. Mortgage lenders therefore rely on the advice of surveyors to provide an accurate valuation, and inform their decision. If surveyors are unable to conduct valuations as normal a lender has less information on which to make their decision. This makes lenders more cautious, and less willing to offer large LTV (loan to value) loans.

Some banks have already taken action to reduce the amount of mortgage options available. Lloyd’s Banking Group and Barclays have both temporarily stopped offering many of their mortgage products. Lloyd’s will now require buyers to have a deposit of at least 40% of the value of the property they are buying. Making mortgages more expensive means they are more difficult to get - you’ll need to produce a much larger upfront amount, and show that you are able to afford the monthly payments.

We expect to see banks introducing more similar measures over the coming days, and we will update this page as soon as we receive more information.

If you need any support or further information we are happy to help. Get in touch with us on: 020 3608 6556 or email: hello@getagent.co.uk

Ready to compare agents?

It takes 2 minutes. 100% free. No obligation.

Related posts
House prices have risen by nearly 50% since the last Financial Crisis
House prices have risen by nearly 50% since the last Financial Crisis
News
House prices have risen by nearly 50% since last Financial Crisis
How do house prices compare to 2008? Read our exclusive piece to find out more.
Read more

Company

  • For agents
  • About us
  • Careers
  • FAQs

Get in touch

  • 020 3608 6556
  • Our lines are closed
GetAgent
The Estate Agent comparison site

Copyright © 2022 GetAgent Limited

We are a company registered in England & Wales, company number 09428979.

Privacy policyTerms of use
GetAgent Facebook iconGetAgent Twitter icon