Looking for the best mortgage deal in May 2020? There is some good news for prospective home owners this month: as the property market begins its slow exit from lockdown, lenders are once again approving mortgages, including on first homes.
However, bear in mind that most mortgage offers that have been reintroduced are 85 LTV (loan-to-value ratio) and lower, so you will need a larger deposit of 15 per cent. Which isn't to say you shouldn't look for the best possible mortgage deal to suit your needs – with the help of the online mortgage comparison tool developed by our partners Habito below.
Have a go at comparing different deals by inputting basic details such as your deposit, property price, and whether you want a fixed rate or variable mortgage. Then, read more about finding the best mortgage deal with Habito.
Please note: Habito is an online mortgage broker and whole of market lender so they will assess the best deals available and work out which works for you. We have an affiliate relation with Habito and take a small percentage of commission for referring you to them.
I've found a mortgage deal: what do I do now?
Habito will engage in an online chat with you, advising you on the next stages, helping you assess affordability and give you impartial advice to ensure you get the best deal for you. Don't worry: you won't be applying for a mortgage without receiving proper advice, and you will get to speak to a person.
Bear in mind that once Habito have helped you identify the best mortgage deal for you and looked over your application, you will be submitting it yourself to the lender. If you don't want to do this, there is the Habito Plus service that takes care of the entire process, including evaluations, for you.
There's also the Habito Go service which essentially give you your own buying agent who will negotiate the house purchase on your behalf, as well as find you a mortgage deal and doing all the paperwork.
Remortgaging: is it possible right now?
Yes – despite the problems faced by the property market due to Covid-19, remortgaging is still possible, with most lenders having reintroduced remortgaging deals back onto the market. Valuations and viewings are now also allowed, so you shouldn't have any trouble going ahead.
Finding the best mortgage deal: how much deposit do I need?
Ordinarily, we would say that the minimum deposit you need is five per cent, while good mortgage deals start at 25 per cent deposit and over. However, right now, 15 per cent is looking like the minimum you'd need to qualify for a new mortgage product, and some lenders are requiring a 25 or even 40 per cent deposit.
It is important to note that while these increased deposit requirements make getting a mortgage more difficult right now, mortgages have not been pulled from the market, if you are able to put together a larger deposit.
Remortgaging isn't affected, and you can still get remortgage deals with a higher LTV.
- More about remortgaging in our guide