How to get a mortgage in uncertain times
Wherever you currently look, times are very uncertain and the world has never experienced anything like COVID-19 before. Unemployment is going up, many employees have been put on unpaid furlough, companies are going bust and the economy is stagnating and businesses are struggling. The look into the future is uncertain and if you are thinking about getting a mortgage to buy your next home or simply to invest for the future, purely thinking about the low interest is no longer the only deciding factor any more.
So what do investors and home buyers, but more importantly banks, base their decisions on for home lending? In our experience, dealing with different banks, we have noticed that some banks have become more reluctant to lend and have put higher thresholds and checks into place, to ensure that lenders will still be able to afford their new place. Some banks have even stopped to lend all together, due to travel and distance restrictions as they could no longer do the relevant checks on the properties (whether it is worth it’s sale price etc). Other banks have also become more hesitant, because they wanted to ensure that lenders will still be able to afford the repayments even in uncertain times.
However, even if some banks have become a little slower in approving credits, we have also been working closely with our financing partners and have noticed only a slight downward trend in mortgage applications. So why is that? First of all the property market in Germany remains a relatively safe option to invest in. Until now the german property market has remained relatively unimpressed by the virus and its consequences and impacts. Whilst it is predicted that the market will slow down a little, overall the ‘Verband deutscher Pfandbriefbanken`and the experts from Deutsche Bank predict that the market in 2020 will remain upbeat and grow somewhat. And why not, the interest rates are still at an all time low and if you look at return for your money, properties will still give you a pretty good rate of return on investment - at least in Germany.
So how do you go about getting a mortgage when you need to socially distance?
Simple! Find yourself a mortgage broker that is able to get you a mortgage completely online. Yes, that’s possible even with all the identity and signature checks and the hefty paperwork you have to complete in Germany. We at EichenCredit are the specialist mortgage broker who is entirely focused on offering you a mortgage service completely online.
From giving you an idea about how much you can afford using our instant mortgage calculator, through the online account that allows you to safely upload and store your documents, through to your online mortgage offer and then finally all payments. Throughout all steps, we will be able to expertly guide and support you, via phone or email - so that you and our team can stay safe. So if you need a mortgage or simply would like to discuss your options, give us a call or drop us a line.