Mortgage Valuations During Coronavirus: What Borrowers Need to Know
The Covid-19 pandemic disrupted industries globally, forcing both individuals and corporations to adapt. One area under intense scrutiny has been the property finance sector — and in particular, mortgage valuations during coronavirus. With lockdowns limiting physical inspections, lenders had to revise long-standing practices almost overnight to keep property transactions moving. At Articus Finance, we’ve stayed close to lender policies and continue helping clients navigate this evolving landscape.
Mortgage Valuations During Coronavirus: Lender Responses
For property financing to progress, valuation is critical. Traditionally, these were conducted in person by surveyors. During lockdown, however, physical valuations became impossible, restricting many applications. Lenders adjusted by adopting creative solutions:
- Automated Valuation Models (AVMs) – algorithm-driven estimates based on data.
- Drive-by assessments – partial inspections when full access was not possible.
- Desktop valuations – assessments performed using comparables and digital evidence.
The extent to which lenders embraced these varied depending on their resources, technology, and risk appetite. In many cases, applications for high-value properties progressed using desktop valuations, though with specific risk thresholds applied.
How Loan to Value (LTV) Ratios Affect Mortgage Valuations
Lender willingness to proceed with remote or desktop valuations was often influenced by the loan-to-value (LTV) ratio. The lower the LTV, the lower the risk to the bank. Some lenders allowed desktop valuations for LTVs as high as 85%, while others capped at 60%. Similarly, restrictions were applied for high property values — for example, some private banks were comfortable issuing desktop valuations up to £1m, but anything beyond required physical inspection once lockdowns eased.
This was an important consideration for Articus Finance clients, many of whom sought to purchase or refinance high-value assets in excess of £1m. Our role was to identify which lenders were prepared to accommodate these borrowers and guide clients to the right solutions. For related options, see our Remortgage Services and Private Bank Mortgages.
Where to Find Advice on Mortgage Valuations During Coronavirus
The landscape around mortgage valuations during coronavirus changed continuously. Early in the pandemic, some banks paused activity due to operational backlogs, focusing on pressing issues like processing mortgage payment holidays. Over time, lenders returned with modified policies, embracing digital valuation practices to keep markets moving.
For borrowers, this meant outcomes differed significantly from lender to lender. Without expert insight, navigating this uncertainty was challenging. At Articus, we stayed informed of each lender’s latest criteria, ensuring clients retained access to refinancing and purchase opportunities.
The Role of Expert Brokers
Mortgage valuations are one part of a larger picture when arranging finance. Especially for high-net-worth (HNW) individuals and global investors, the challenge lies not only in valuations but in aligning with a lender capable of assessing complex income streams and international wealth structures. Through our extensive network, we secured bespoke solutions that allowed transactions to continue despite operational barriers.
From High Net Worth Mortgages to Expat Buy to Let Mortgages, our team has successfully placed finance even in complex scenarios impacted by valuation limitations. Partnering with Articus ensures insight into emerging trends and lender appetite.
Final Thoughts on Mortgage Valuations During Coronavirus
Mortgage valuations during coronavirus highlighted the adaptability of the UK property finance sector. Although physical inspections stalled, lenders quickly introduced alternatives like AVMs and desktop valuations, ensuring borrowers could still transact. For HNW and international clients, expert brokerage became invaluable in finding banks ready to proceed with high-value purchases and refinances.
At Articus Finance, we combine lender relationships with deep market knowledge, enabling clients to secure finance no matter how challenging the environment. If you have questions about arranging finance, Contact Us today. For wider regulatory guidance, see the Bank of England.
