Is Now The Right Time To Invest In A Property
Those looking for a property have been able to since May 13th. Tenants viewing properties are now looking for something more than before. We have tried to answer some of the most important questions in the minds of potential home buyers.
Nationwide research suggests that UK has seen the biggest drop in house prices for a decade. Most lenders, estates agents and experts are expecting a fall in house prices this year. The Center of Economic and Business Research projects a fall up to 13%. Where as Knight Frank suggest just 3%. Winkworths Chief, Dominic Agace stated buyers were getting a discount of 3-6% on purchases during lockdown.
Twenty CI has reported that property sales during the first week of June were 54% greater than the week before. And 6% greater than 1 year before. However, the drastic rise is likely due to sales being put on hold for the months previous. There is a growing concern for unemployment. With anticiptaion that unemployment levels will rise. This could mean more pressure on the house market.
Can I still get a mortgage
We have seen recently, that lenders are offering mortgages with higher loan-to-value ratio. This was mostly down to lockdown. With some mortgage lenders suspending applicants due to a growth in demand. And nationwide has limited their LTV to 85%. Also, the time it takes to conduct physical property valuations is taking longer than usual. Mostly due to social distancing guidelines. It is also taking longer to process mortgage applications as more details are now being needed. An applicants potential income may now be affected and job security levels are at risk. In these circumstances lenders are looking for more information and may request extra data from applicants. This extends the process and reduces the amount of applications which can be processed.