"With viewings cancelled, estate agent offices closed and work on new developments halted, the coronavirus pandemic has effectively closed down the housing market."
Prior to the lockdown period, over 25% of mortgage applications were for products with LTVs at or above 85%, compared to less than 6% in April.
Hometrack also announced that the number of applications using its desktop valuation solution has increased by 500% since the outbreak of Covid-19.
Additionally, the proportion of all valuations completed by its AVM has risen by 15%.
David Ross, managing director of Hometrack, said: “These are unprecedented times for the residential property industry. With viewings cancelled, estate agent offices closed and work on new developments halted, the coronavirus pandemic has effectively closed down the housing market. This has been compounded by banks tightening their lending criteria and removing many products from the market as they try to minimise their exposure to more risky customers.”
“In this challenging climate lenders are turning to automated valuation and desktop services so they can serve their customers remotely. With physical valuations no longer possible clients know that our AVM is not only reliable but can quickly and easily be used to provide robust digital valuations. This, combined with transparent and regular reporting, gives clients the confidence they need to meet the needs of their customers and make informed lending decisions.”
