First Home and Finding a MortgagePosted on 13th November 2020 in News
First time buyers are a vital part of the housing market in Scotland. While the process of buying is usually somewhat simpler for first time buyers, 2020 has brought its fair share of challenges. So how exactly has the pandemic affected people’s ability to buy their first home, and what can everyone do moving forward to keep their home move journey as smooth as possible?
The importance of being in a position to offer has never been greater. Prior to the end of March, it wasn’t entirely uncommon for viewers to be out visiting properties without details of their financing being finalised. However, when the housing market reopened on the 29th June it became clear that agents up and down the country were facing demand like never before.
With the number of buyers outnumbering the amount of properties on the market, it became clear that being in a position in which you’re able to move forward was now critical to success in buying a property. The option to wait to finalise details of funding was no longer viable. With the pandemic ongoing, many people found themselves at risk of unemployment. In turn, this meant a much greater risk for lenders when it came to providing mortgages.
Along with climbing interest rates, higher and higher levels of deposits were needed. Those who were relying on a 95% mortgage found themselves in a tricky spot as one by one the lenders started pulling all their 95% products. A further blow was delivered when the First Home Fund was put on pause until 2021 after funding had been used up, meaning that buying was now out of the question for a lot of people.
Getting a mortgage continues to be a struggle – with the fluid COVID situation, lenders have been making changes to their criteria at short notice, meaning that while your mortgage application may have been accepted at the start of the week, come the end of the week things could have changed quite a bit. Lenders have unfortunately even been withdrawing products at very short notice, sometimes leaving people in a sticky situation. Even when people meet lenders continuously changing criteria, the wait time for a mortgage to be offered has greatly increased on many occasions compared to the start of the year.
A lot of people will probably be sick of being asked about their finance by agents, but in truth it’s never been a more important question to ask. Our job is to sell our clients properties and help buyers find their dream homes, and that’s what we want to do. So when we ask, it’s to try and provide as much help and support to anyone we speak with as we can, and often first time buyers benefit greatly if they’re not entirely familiar with the property market. Being organised with finance has never been more important, and ensuring you have the right mortgage broker by your side really will make your move that much easier.
If you are looking for mortgage advice, whether you’re looking at buying this year or next, Walker Wylie is lucky to work alongside the fantastic brokers of Dillon Mortgages. Contact us today for any advice you may need.