It’s no secret that Covid-19 has had a devastating impact on the entire world.
Millions have lost their jobs. Off of the back of this, many will have to take payment holidays on their mortgages, some may eventually fall behind on mortgage payments and some may even lose their homes due to repossession.
What does this mean for the market?
I’m going to focus on 2 things today.
- It will be a buyers market, not a sellers
- Lenders will have to recover a lot of unpaid debt and be a lot more frugal with who they lend to
What does this mean for you?
The person with a home to sell…
- Now is the time! Sell as soon as possible and sit on the funds. Move in with family, think about short term renting and sit on the proceeds of the sale as in a few months, you will be able to buy a bigger house for a lot less.
- Fast forward a few months… If you take too long to take the leap to put your property up for sale, you may need to take an Offer much less than what you wished for.
Are you in a chain? There’ll be more about what can do next week…
The person with a home to buy…
- Hold your horses. There are going to be many houses to choose from and many people desperate to sell them so this may work in your favour when it comes to negotiating on price.
- You may need to front more deposit than you may have initially planned due to Mortgage products being quite unstable. 90% Mortgages which require a 10% deposit have been pulled and reintroduced week by week. Lenders may also be a lot more picky with who they lend to, request much more information and be much quicker to decline applicants who don’t fit within their risk appetite
Key take aways
- The time is now!
- Be patient. Fix your credit & save save save!
All information on my blog is opinion driven based on market trends, statistics and forecasts regarding the current situation.