The immediate and short term impact of Covid-19 to the mortgage market has been significant with Mortgage lenders scrambling to ensure their businesses remain secure and stable both for them and their customers.
The impact has been almost on every level, some of the key ones are outlined below, [information updated 17th April 2020]
- Bank of England Interest Rate has been lowered to 0.1%.
- Physical property valuations have ‘almost’ completely stopped
- The UK government has advised Lenders to allow a 3 month payment holiday for borrowers. Use our Covid-19 Mortgage Information Tool to see how you can apply for a 3 months payment holiday with your lender.
- The UK government has provided ‘advisory’ guidance not to move forward with new property purchases
- Assessing affordability for new mortgage applications has become increasingly difficult for mortgage lenders
- The economic outlook is negative for the UK (for the immediate short term)
- Social distancing rules have had logistical impact on the wider industry
Whilst some of the headlines above have had a more significant impact on the industry, solutions are being found with lenders and industry players providing a key role in keeping this market moving.
Whether you are looking to purchase a new property, remortgage your existing property or switch to a better product – the fact is you CAN still proceed with these transactions.
You can instantly see if you can save money by switching your mortgage using our ’10 second’ mortgage switching checker app.
Switch Rates can you with most mortgage transactions – we provide a guarantee that our advisers are qualified, independent and will never charge you a fee.