As the lockdown period caused by the Covid 19 continues the mortgage and housing market continues to be hard hit. Forbes reported that the “property portal Zoopla has suggested that around 373,000 property purchases, worth an estimated £82 billion, are on hold because of coronavirus. It expects completed sales in 2020 to be half those in 2019 (^).”
House price forecasts vary widely, and many were proved inaccurate following the EU referendum in 2016. This makes getting a clear picture difficult at present, particularly with the overall situation with the pandemic changing daily. What we can say is that if there is a drop in equity then mortgages may well become more expensive as borrowers will be taking a higher percentage of the overall property value.
What can be done is a review of your existing mortgage arrangements. With the potential for largescale shifts in the job market, the impact of payment holidays and other aspects of the economic impact of Covid 19 it is certainly worth reviewing what options are available to you to reduce the impact of any changes in your circumstances that may arise in the coming months.
Writing in the Financial Reporter 9(#) in early May 2020, Jeff Knight highlighted that those needing specialist advice to achieve the most suitable mortgage offer for them will increase post Coronavirus. He went on to say: “In that regard, it was interesting to read Knowledge Bank’s most searched for terms during March, four out of the top were for specialist lending criteria, with ‘maximum age at end of term’, ‘interest-only’, ‘self-employed with one years accounts’ and ‘defaults registered in the past three years’ all understandably coming behind ‘Covid-19 mortgage payment holidays’ which topped the chart.”
In previous blogs, we have talk about specialist mortgage requirements, from the self employed to particular health conditions, and those living with life limiting conditions. As Knight points out (#) the demand for specialist advice will almost certainly increase in coming months meaning. This along with many people’s changed circumstances make this the time to review your existing mortgage. If you are considering re-mortgaging we are available to discuss your personal situation by phone or we can arrange an online meeting using Zoom. The details can be found on our contact page.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it
You may have to pay an early repayment charge to your existing lender if you re-mortgage.