How The January 2021 Lockdown Will Affect The Property & Mortgage Market?
From Tuesday 5th January, the Government has confirmed that you still have the ability to purchase or sell a home, as well as move home if necessary.
Boris Johnson, the Prime Minister of Great Britain, announced on 4th January 2021 that the UK would be once again going into a national lockdown, in a bid to keep the country safe and control the virus. All changes would take effect the following day on the 5th, with certain sectors remaining active throughout the next 6 weeks.
Working in a similar way to the lockdown we experienced back in November 2020, the property market will remain open for business as usual, meaning you are still legally allowed to view properties, continue with a property purchase and sell your current property.
It is important to note that you may still find yourself experiencing delays with some parts of the sector. Solicitors and Surveyors are in need of tighter restrictions once again, leading their services to take a little longer than initially expected. Experts are also predicting there to be a mad dash of customers attempting to take advantage of the Stamp Duty Cut before that eventually ends.
We would like to urge anyone thinking about or starting to move home, to stay safe and please make sure you’re following all the correct guidelines. Please see the latest government guidance on how you can protect yourself and others whilst moving into a new home.
We are happy to tell you that yes, 90% mortgages are still available for homebuyers. We are seeing signs more frequently of lenders having confidence in the UK property market as time passes. They know that the demand for properties is still very much alive, and that people will only start coming back when they are certain that they are able to get a deal with a 5-10% deposit.
You may also be able to access a 90% mortgage by way of a route like the Help to Buy Equity Loan scheme or the Help to Buy Shared Ownership scheme. Your trusted mortgage advisor will be able to explain how these methods could be used to help you obtain a mortgage with only a 5-10% deposit.
Mortgage Payments Holidays (a means of temporarily putting a hold on your mortgage payments, something that could leave you at a financial disadvantage during the pandemic) were due to end on 31st October 2020. Thankfully for many in need, this option for existing homeowners has now been extended to 31 March 2021.
If you are yet to take advantage of a Mortgage Payment Holiday, you’ll be able to request a break of up to 6 months. If you’ve already taken a Mortgage Payment Holiday of less than 6 months, you will be able to extend your current holiday up until the 6 month point.
Our dedicated and customer friendly mortgage advice service is still operational and we’re available to help out in any way we can. We have a team of dedicated mortgage advisors on board, who are free to answer your questions from 8am – 10pm, 7 days a week, all throughout the year. This past year has been difficult enough for a lot of people. As such, we would like to take as much stress out of your mortgage process as possible.
All customers will still benefit from a free initial mortgage consultation, no matter their circumstances.
For a brief explanation of the current status of the property and mortgage market, please see our video from company director Malcolm Davidson, recorded the day after the Prime Ministers public address.