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The impact of the coronavirus on a buyer who wishes to purchase a property using a mortgage will largely depend upon the progress and stage of the transaction.
If you already have a mortgage offer and the transaction is likely to go ahead then the government has advised both parties to defer the completion date where possible (read our blog on the effect of Covid-19 on exchange of contracts for more information). Generally, mortgage lenders have agreed to extend mortgage offers for up to three months where there is a delay to completion and so it is important to inform your lender of any changes.
However, the effects of coronavirus mean that property valuations are decreasing and as a result, some mortgage lenders are withdrawing offers or reducing the loan amount to protect the loan-to-value ratio over the property. This means that buyers may no longer have a valid mortgage to be able to proceed with a transaction or may need to find additional funds if they still wish to proceed.
If you are yet to obtain a mortgage offer, there may be difficulty in applying for one at the present time due to surveyors being unable to carry out valuations and the general uncertainty involved with lending. If you are re-financing and you already have an existing mortgage, some lenders have now expressed willingness to carry out desktop valuations without physical inspections of the property to update an existing valuation over the property.
If you would like any further information or advice in relation to buying or selling a property, please contact us on 01384 410 410 or send an email to residentialconveyancing@georgegreen.co.uk. You can also get a free quote by using our conveyancing quote tool on our website.