Revolution in action – the changes in the mortgage market that will extend beyond lockdown

The mortgage market has been changing at an extraordinary rate over the last few weeks and we have seen a major fundamental change that we believe will extend beyond the end of lockdown. 

That change is the valuation process, with valuers now using desktop valuations more often (i.e. undertaking research to value properties without physically visiting them). The Coronavirus crisis has demonstrated that these virtual valuations are viable and that they can be undertaken at scale. Some mainstream lenders are prepared to lend at 90% loan-to-value (LTV) via desktop valuations now.

The adoption of desktop valuations will only become more widespread and now some buy-to-let lenders that were previously slower to respond are also on-board.  Where data is available online valuations will be used in all but the most complex circumstances, but we will believe that this will eventually extend to HMOs and multi-unit blocks too.

This is now the new normal and will ultimately benefit borrowers, speeding up the mortgage application process and saving time, but also saving money, too. Moreover, this method ultimately is greener and more sustainable, reducing the need for valuers to make journeys by car in all but the most complex cases.

From the lender’s perspective, those that are quick to adapt to this process are reaping the rewards of their agility in terms of more business and we have seen a number of cases recently where mainstream high-street lenders have lost out to one of their competitors. 

This links to the fact that offer times are now outperforming pre-Coronavirus levels, and in some cases that time frame has been slashed. In fact, several of our clients in the last couple of weeks have received offers within 2-3 days (not a typo).  For example, one client’s mortgage was declined direct with their bank for a purchase and they needed to complete extremely quickly.  We worked with a lender who had short processing times and could do an online valuation and the offer was ready in two days.  This allowed him to complete in under 2 weeks as the legal work was already underway – a quick turnaround even without the added pressures of COVID-19.

We believe that now lenders and valuers have adapted to life under lockdown, we will see processing speeds increased going forward for all mortgage types and this bodes well for the recovery of the housing market going forward. 

Revolution in action – the changes in the mortgage market that will extend beyond lockdown


Leave this field blank
*  =  Required field


© Private Finance Limited, 2020. Private Finance provides independent mortgage advice and arranges individual mortgage solutions for clients. Private Finance is a trading style of Private Finance Ltd, 29 Lincolns Inn Fields, London, WC2A 3EG, registered in England no. 3855776 and its Appointed Representatives. Private Finance Limited is authorised and regulated by the Financial Conduct Authority (FCA registration number 310566).

Private Finance Ltd is rated 4.96 stars by based on 890 merchant reviews

4.96 / 5 Rating
890 Reviews
Luke was efficient, trustworthy, helpful and easy to deal with. We have used him at least three times for our mortgage / remortgage and will do so again!
Ryan Garbett and Nathan Cole, assisted me with remortaging and the purchase of my new property. The products were competitive and the service received was exemplary, keeping me informed at each stage and responding quickly throughout the whole process. Will continue to use for any future needs, no question.
Donovan Mawson helped us re-mortgage two London properties to pay for our new home in Northumberland. He and his colleagues provided a level of professionalism, integrity and efficiency that I have never previously encountered in the financial services industry and I'm 62. Simply the best aptly sums up their performance. Absolutely no hesitation in recommending Private Finance to friends and family. Kevin J
The British Mortgage Awards 2015 back to top