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The house buying process can be tricky at the best of times let alone in the current climate as the Coronavirus clamps down on the country and nearly two weeks into the nationwide lock down there is still a lot of uncertainty hanging over.

However here at Oliver Rayns although our office is closed to ensure the safety of our staff we continue to operate and have adapted to ensure we are still able to assist all our existing and new clients.

Therefore, despite lenders going into safe mode and restricting their capacity to lend – Nationwide, Halifax, Virgin Money and the Coventry are a selection of the largest UK’s lenders who have updated their product range and capped lending to reduced LTV (Loan to Value) levels.

How does this affect you – well, if you were looking at a £200,000 property to purchase, before the Coronavirus customers were looking at deposits in the range of £20,000-30,000. Since late March the deposits now required are £40,000-70,000 with most lenders which is a drastic increase.

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There are numerous reasons for the change in stance from the lenders with the number 1 being the uncertainty in the property market. If the markets fall as they traditionally have during a recession, the prices of property will reflect these falls and lenders are ensuring they do not end up in a situation like the #2008market and have default rates with negative equity.

However, with all the doom and gloom surrounding, the cost of borrowing is at an all-time low with the Bank of England base rate at 0.1%. Not only this but we still have a wide range of properties for sale and with our network of professional contacts in the Mortgage and Legal sectors we have seen that with the right advice house purchases can still happen as there are still lenders with an appetite to lend up to 95% LTV (Loan to Value).

Remember, property and your mortgage are for the long term and regardless of what happens to house prices in the coming months, if you’re looking for a longer term family home or investment then traditionally the house price growth will far outstrip inflation, RPI and any market falls meaning you will typically have a healthy amount of equity in your property.

We recommend speaking to our expert team here Oliver Rayns for any property needs and New Walk Mortgages, our partnered Mortgage Adviser for any assistance in looking for a new mortgage, remortgage or insurance products.