If you are in the mortgage market and especially if you are a broker, you probably can relate to the sometimes tedious sequence of processes and events that have to take place to get a mortgage application all the way to completion. It is a sequence of negotiations and communications that often leaves everyone in the process somewhat exhausted as the seller needs to negotiate with the buyers, the broker with the lenders and back to the buyer who also has to communicate with the solicitor!
The story has to all add up and be seamless as a result of these different functioning human beings managing to come to the same conclusion and understanding about the asset that they want to have the transfer of ownership with. The success of this process is marked by a wonderful day of completion when the buyers get the keys to their home in their hands and the sellers leave with some money in their bank account, funds to carry out their next financial transaction. Something much more complex than the initial sign you see on a house doorpost that says FOR SALE!
The coronavirus pandemic has put a little spanner in some of these works in recent weeks particularly for lenders who were not prepared to do a drive-by or desktop valuations and this has slowed or even halted many processes as a result.
This week when I submitted a mortgage application for a purchase with a particular provider, I did not expect them to respond back in the same day as this usually takes at least 2 to 3 days for the application to be assessed in normal times. You can imagine the glee I felt when hearing that the application had been progressed to the valuation stage and in a couple of hours, hearing that the desktop valuation had been done and satisfactory. Within a few more hours, on the same day, I received a mortgage offer which got me proclaiming that this was certainly a Lockdown Mortgage Miracle! Application to offer on a purchase application within 24 hours during Lockdown! Supernatural speed or what?
Just a taster I think of the ease in processes that can happen when some of the cumbersome requirements are removed out of what should be a quick process when everybody has dotted their i’s and crossed their t’s.
Some silver linings to be had in these difficult times we find ourselves in as humanity and a glint of hope that whilst some old income streams are likely to dry up, there will still be some new opportunities and avenues opening up for those who are willing and flexible enough to ride with the waves of change.
LOCKDOWN MORTGAGE MIRACLE- Some light in a tunnel of uncertainty!
Tendayi Ndoro BSc(Hon)DipFA Cemap
Independent Mortgage Advisor