Mortgage Monitor: Market restart to unlock stalled mortgages
Lenders and valuers are to resume physical inspections of properties over the coming days as the government’s decision to ease the lockdown enabled companies to begin clearing a backlog of mortgage applications.
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Accord Mortgages was among lenders that said physical valuations would resume. The company increased its maximum loan-to-value (LTV) on residential mortgages to 85 percent, and raised its maximum property value for residential lending from £1m to £2m.
A firm of valuers so ubiquitous on bank panels that during normal conditions it conducts an inspection every 25 seconds said yesterday it would resume some physical valuations later this month where properties are vacant or occupied in a manner that allows staff to observe social distancing guidelines.
The move to reopen the housing market will help protect the livelihoods of the 2.3m people in the housing and construction industry, Housing Secretary Robert Jenrick said yesterday. The decision will also enable mortgage applications that were underway, but held up while physical valuations could not be completed, to progress, according to Knight Frank Finance Managing Partner Simon Gammon.
“As a result of this latest advice from the Government, we are already seeing surveyors opening themselves back up to carry out physical inspections. This in turn will widen the lending options potentially available to you, and so it is worth speaking to your adviser in light of this change.,” said Mr Gammon.
Mortgage Brain, a lending technology company, said yesterday that ESIS volumes – a proxy for mortgage market activity – climbed 8.4% during the week ending May 17th and have climbed 12.4% since the lowest point.
The number of products available to borrowers has remained largely stable for five weeks at almost 8,000, about 45% below the pre-crisis peak.