Mortgage Rates & COVID-19: What it means for you

COVID-19 has had a huge impact on the property industry and has created a lot of confusion amongst buyers and sellers. 

The pandemic resulted in some banks withdrawing half their deals, and buyers with smaller deposits struggled to find a deal almost anywhere.

But with the property market now back in action following lockdown,and the market is starting to find its feet. However, there’s still plenty you should know.

A number of trends seem to have emerged post lockdown and below you’ll find some of the more common ones that could influence buying and selling during this time:

Interest Only Options Rising

Compared to March, the number of interest-only options on mortgages has risen significantly from 48% to 61%.

This is said to help reduce monthly expenses and is an option for those who have in particularly suffered from the pandemic. You should be aware that you’ll need a plan in place to repay the capital and you should seek advice before going ahead with this option.

Longer Term Fixed Rate Mortgages

A number of lenders have extended their fixed-rate mortgage options with some offering a five-year plan, with others even offering 10-year fixed-rate mortgages, with rates of 1.99%.

It’s a good deal for those who are looking to settle in a home for a substantial period of time, but not ideal in terms of flexibility, which could potentially be an issue in what are uncertain times currently. 

Energy Efficient Discounts

Post COVID, we’re also seeing a large number of industries, and indeed politicians and countries, consider the impact they’re having on the environment.

There’s been an even bigger push to go green, and that’s seeped into the mortgage markets, with some lenders now offering green mortgages which offers discount based upon the energy-efficient features and improvements in your home.

Of course, some sellers are finding it difficult to sell in some conditions, and it’s further food for thought about what’s necessary to sell on the open market these days. Of course, if you are struggling to sell due to a lack of energy efficient features, we buy any home in any condition and are always on hand to provide you with a cash offer at a pace to suit you.

Help For Self-Employed Buyers

The coronavirus pandemic saw self-employed traders and business people struggle when it came to understanding what they were entitled to, and it’s often considered they are left out in the cold frequently in various systems.

However, a number of mortgage lenders are now offering initiatives to appeal to self-employed buyers. Some lenders, for example, are offering a 75% mortgage for just one year of accounts, while others are giving more established self-employed people the opportunity to take the first year of their mortgage interest-only.

A Returning Market?

The housing market is starting to pick up once again, but it is still proving difficult to sell in some instances and get back onto the market. If you’re needing to sell to make your next move, chat to one of our expert team who will be able to guide you through the process of selling to us.

We’re cash buyers and can make you an offer within 24 hours. There’s no chain and we pay all the fees to ensure the smoothest possible transaction to get you moving on to your next home.