Sheards and Tailored Mortgages recently partnered to host a new landlord open day, to offer free advice and guidance surrounding the responsibilities of being a property landlord. Find out more about the open day here.
Government helps homeowners and renters
With businesses across the UK suffering amid the COVID-19 crisis, many workers have taken a hit to their income. It is therefore understandable that many are worried about paying their mortgage or rent. That's why the government has stepped in with a financial support package to help people remain in their homes. On 17 March, the government announced that mortgage lenders would be offering three-month mortgage payment holidays to homeowners affected by Coronavirus.
It should be noted that the measure is a temporary reprieve – interest will still accrue on the loan, while the capital sum outstanding will remain unchanged. Measures were also introduced to assist renters facing eviction. In the Coronavirus Act 2020, the notice period a landlord must give a tenant before starting eviction proceedings was extended until 30 September 2020.
While the measure provides relief to financially struggling tenants, it does not exempt them from paying their rent, which could lead to further financial difficulty if not appropriately managed. Financial advice is key In times such as these, it is essential to seek professional advice to avoid further damage to your finances.
Coronavirus crisis hits house price growth
The beginning of this year saw the slow return of certainty and activity to the property market, with experts predicting slow but steady long-term house price growth. For example, Knight Frank predicted modest 2% growth across the UK in 2020, with 15% cumulative growth by 2024, while Savills predicted 1% growth this year, rising to 15.3% over five years.
Unfortunately, this outlook has been tempered by the economic impact of the COVID-19 crisis.
New government advice
Government guidance to home movers impacted property market activity; the GOV.UK website now advises:'Home buyers and renters should, where possible, delay moving to a new house while measures are in place to fight coronavirus.'
Savills predicts that the coronavirus crisis could lead to short-term price falls of -5% to -10%. Positively, however, it expects the pandemic to have a lesser impact on house price growth than the early-1990s recession or the global financial crash. All in all, it forecasts a 'short, sharp shock', with recovery expected in late 2020/early 2021.
Hold tight
Economic indicators suggest that the impact of coronavirus on the housing market will be temporary.
Seek advice for adverse credit mortgages
Do you find yourself wondering what sort of mortgage you can get, or indeed whether you have any options at all? Although getting a mortgage with bad credit can be difficult - especially if you have defaults, individual voluntary arrangements (IVAs), county court judgments (CCJs), or a bankruptcy in your credit history - it is possible.
A YouGov survey found that nearly six in ten (57%) prospective home buyers, with a missed payment on their credit file within the past three years, would use a mortgage broker.
Advice is essential
It pays to be cautious and seek professional advice from an impartial mortgage adviser as unsuccessful applications can bring down your credit score.
Your home may be repossessed if you do not keep up repayments on your mortgage
Get in touch with Magda Kotz, Mortgage & Protection Advisor at Tailored Mortgages here.