Despite current short-term interruptions being experienced, the mortgage market remains open and things will settle down over the forthcoming weeks according to Brian Murphy, head of lending at Mortgage Advice Bureau (MAB).
Murphy believes that lenders are doing their best to adjust to new demands and are aiming to widen the range of mortgage products at the earliest opportunity.
Mortgage lenders have had to divert considerable operational resource to cater for the “significant” increase in existing borrower telephone traffic which is not helped if the technology being used remotely is not efficiently performing, according to Murphy.
MAB recently launched a national mortgage information service to help those struggling with their finances as a result of COVID-19.
They have also introduced an online resource of FAQs which is updated daily and includes some of the most common questions customers have about mortgage payment holidays or their finances in general.
Despite the increase in lenders using automated valuation models and desktop valuations due to physical valuations being prohibited at this time, Murphy believes that this is not a solution for all.
Murphy adds: “Specifically, those lending in the more specialist sectors of the mortgage market, including sectors like new build, buy-to-let or affordable housing will remain restricted where lenders own risk appetites and insurers require physical valuations determine the value at a given LTV, rather than being able to rely on remote working and technology.
“In those circumstances, delays will remain but in other parts of the market such as elements of the remortgage and product transfer market, business will continue largely as normal.”