Gloucestershire
Shropshire
Staffordshire
Q: How long is this situation likely to last?
A: Well, no-one knows at the moment but there may be tentative sign in other countries that there is light at the end of the tunnel. Wuhan was locked down for 11 weeks before they lifted restrictions and they’re not reporting new cases of the virus. We’re also seeing restrictions being lifted in European countries so, hopefully, the UK won’t be far behind in seeing some more light?
Q: Can I get a mortgage during this pandemic; are lenders still lending?
A: The short answer is yes, lenders are still lending but there have been changes in terms of what they will offer on new homes. Lenders’ staffing levels have been affected by the current crisis. Many offices have been closed but the main issue is that surveyors can’t visit new homes’ sites to conduct valuations, so mortgage offers can’t be produced. A very small minority of lenders are now conducting desk top valuations as a way to get around this issue.
Q: Have lenders withdrawn their New Build products because they are concerned about property prices?
A: Not at all, lenders have only pulled back for two reasons: a) they can’t get valuations, and b) they need to scale back on the number of mortgage applications because they don’t have the staff to handle them. We have not seen any developers reduce prices or hint at reducing them going forward.
Q: What about furlough; how could that affect things?
A: Anyone placed on furlough will have their borrowing capacity assessed on the income they are in receipt of. So, if this means one’s income has dropped due to Furlough, it is the new income that will be used to assess affordability.
Q: What about zero-hour contracts?
A: Key Workers will not be affected by changes to the way Zero Hour contracts are assessed, whereas other workers, e.g. restaurant staff, will be affected.
Q: What about my credit file where I have missed payments on certain things due to being Furloughed?
A: The credit agencies have confirmed that anyone that has been affected by Furlough will not see any adverse effect on their credit file.
Q: Will the current Help to Buy deadline be extended beyond April 2021?
A: Homes England has made it clear that the current deadlines remain in place so, from April 2021, ONLY First Time Buyers will be able to proceed via Help to Buy. Next-Time-Movers must be on board buying a new property that is structurally completed by December 31st 2020.
Q: What will happen to interest rates?
A: The Bank of England has dropped the Base Rate to 0.1%, the lowest on record. Lenders’ rates were already very competitive and it remains to be seen what they do with their rates as the commotion dies down. If anything, some lenders have actually increased their rates so it is more important than ever to secure a good rate as soon as possible. The Bank of England will be in no hurry to raise its rate until they are happy the UK economy is on track again.
Q: If I get a mortgage, will I actually be able to move if my house is ready?
A: Yes, the Government has made it clear that moving into an empty house is fine as long as everyone maintains social distancing. This is a completely different proposition from moving into a second-hand home for obvious reasons.
