What is the housing market new normal and what does it mean for you?

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- Salli Anstey

With UK banks having approved over 1.2 million mortgage payment holidays*, lenders restricting their application criteria and thousands of home sales abandoned, the housing market is certainly seeing a showstopping effect from COVID-19.

We are though seeing some creative workarounds emerging, suggesting that if your original plans have screeched to a halt, there may still be an alternative solution that can work for you. For example, even though surveyors are unable to visit properties, some lenders are now working from Automated Valuation Models (AVMs) – technology that works on algorithms and local market evidence to estimate the value of the property.

You may be understandably concerned about what is going to happen to interest rates and house prices and will be wondering when things will be certain again. Rather than worrying about things that are out of your control, it’s important to look at your known personal circumstances, keeping in mind what you CAN control. In many cases, original plans will be able to recommence once lockdown eases.

Whatever your concerns, a chat with one of our experienced mortgage advisers who have sight of the ‘whole of the market’ could help answer some questions. We are able to advise how each lender is approaching new and existing customer applications and any current restrictions to what they can offer. If you are self-employed, we can help you understand what lenders may need to know for a new application now or in the next couple of years. If you are employed and furloughed, you may want to have your affordability reassessed based on your current financial circumstances.

It’s tempting at a time where your income may have reduced to save money on mortgage protection insurance policies. It is crucial, however, to adjust rather than cancel these policies which could leave yourself and your family unprotected. We are happy, with no-obligation and no fee, to review what you are paying for and check that it’s still relevant to your present circumstances.

It is understandable to feel that plans have to be put on hold, changed or even cancelled with the current situation but quite often, they just need to be reviewed, amended or simply postponed. Without a fee and with no-obligation, we can chat through your situation and advise you on the best options based on your personal circumstances, so, please give us a call today at Private Wealth Mortgages on 01403 270 006 or email: info@privatewealthmortgages.co.uk.

WE WANT TO HELP!

*According to a recent study by: ‘ukfinance.org.uk’

 

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Private Wealth Mortgages Ltd is authorised and regulated by the Financial Conduct Authority. FCA Number: 445980

Private Wealth Mortgages Ltd, Hillreed House, 54 Queen St, Horsham, West Sussex, RH13 5AD

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