No one knows exactly what the world will look like post lock down, but we do know that the restrictions will ease. Other countries are moving towards an easing of the lock down status, I am sure that britain will follow suit maybe taking a different path or using a different method. Once the housing market starts to move again which of course depends on how the economy performs, what will things look like?
There may be less Jobs some jobs will have been lost this is a reality there may be less first-time buyers around, however most will find a new job and re – enter the market with a deposit albeit a few months later.
House Price Drop
Less demand in the short term means there will be a dip in house prices no one knows whether this will be 10% or 20% many different figures are being banded about at the moment.
The Other Side Of The Coin
Lower house prices do help those who were struggling to buy their first property due to mortgage affordability who have a secure income these buyers may now enter the market. Lower house prices offer value so there is likely to be fresh interest from Buy To Let Landords in Wolverhampton looking to purchase investment properties.
I will adapt my business model for the new normal which is
more technology, using Zoom and whatsapp for advice and engaging with clients.
Please see my previous post on this Market-disruption Face to face mortgage advice will return I am
sure but don’t ask me for a date on that one.
The Banks And The Securitised Lenders
Mortgage cases with lower loan to value thresholds on
properties are still going ahead with the use of desktop valuations, (AVM)
Automated valuation model systems. Surveyors are still going out to conduct a
physical valuation on a property if they are empty. The high street lenders are
proceeding with the vanilla low risk cases, but shying away from the usual or
standard mortgage cases. There are however plenty of specialist lenders who I
deal with on a daily basis who are happy with a client’s complex mortgage
So clients are still looking to purchase and remortgage their
homes and the new normal becoming over time the norm. Despite the lockdown
business and society will carry on mortgages-during-the-lockdown The
mortgage market with the help of technology will adapt to these changes.
Are you thinking about a mortgage but you are unsure of the
process, you may have complex finance and mortgage needs, or questions about
how it works. I can discuss your finance needs over the phone by whatsapp, zoom
or via email.