The lending market after a month of lockdown following the Coronavirus outbreak in Jersey is still very much open for business. Octagon Finance were fortunate enough to be considered an essential Jersey business and we have remained open throughout these unprecedented times. All parties, including ourselves are acting with calculated caution.
It is this caution that makes it very difficult for high street lenders. The social distancing requirements mean that Surveyors are unable to enter homes that have occupants, so unoccupied or new properties can be visited by surveyors, but for properties where people reside it is nearly impossible for banks to perform valuations on properties they are lending against. At the time of writing there are two local banks who have amended their lending criteria and will allow what is known in the industry as a ‘Drive By’ valuation. This avoids Surveyors having to enter properties during lockdown and the mortgage application process can seamlessly continue.
Borrowers that do not wish to use the two banks accepting ‘Drive By’ valuations can make an appointment with Paul at Octagon Finance who can assist in the arrangement of ‘Private Finance’. This type of finance is provided by local investors who are experienced and knowledgeable of the local property market. Private lenders are also currently happy to accept ‘Drive By’ valuations, interest rates on offer are slightly higher with a 3 month term at 3% or for terms greater than 3 months, rates start at 6% pa. Generally, borrowers use this finance option in the short term which allows them to complete their purchase timely and apply for a bank mortgage at a later date when more banks are able to complete the mortgage process.
The lending market remains positive following lockdown and social distancing requirements, borrowers still have lending options available and courts remain open for property transactions to pass. For us, its business as usual albeit using calculated caution.
Director, Octagon Finance
Tel: 01534 744900