Mortgages in the PandemicPublished on: 10th March 2021
As businesses went into furlough, the world shut down, and people no longer went to offices back in March 2020, banks started to focus on a key factor driven by COVID-19: debt. Those thinking of buying saw the high Loan-to-Value (LTV) mortgage deals evaporate, so the new UK Government initiative, formalised via the Budget, to help with purchases of up to £600,000 has come at a very welcome time. As has the continuation of the Furlough Scheme.
Thinking of buying property in Scotland? Like the Help-to-Buy scheme – closed to new applicants – the Chancellor’s new scheme will incentivise the retail banks to lend to those customers deemed beyond their current risk appetite.
“Money is as cheap as ever and interest rates for savings remain low, so property still represents the great investment it has always been. Low rates in financial markets mean Rishi Sunak can fund this mortgage guarantee scheme now, and it’ll be welcome by first-time buyers and those looking to trade up in the housing ladder.”
Almost all of us have felt the upheaval and stress of the lockdowns, and for some this took on real meaning beyond the everyday. By the middle of 2020 the FCA (Financial Conduct Authority) estimated that mortgages with 90% or above LTV formed a mere 2% of the mortgage market, a figure not seen for over a decade, so the Government has been forced to act.
If you are looking to move and to start that new work–life balance, benefitting from rural or town living, a healthier lifestyle and pursuits, and homeworking, Robb Residential can help. Most of the properties we sell have ample room for homeworking, as well as enjoying access to nearby towns and cities in preparation for a post-pandemic reopening.
To discuss a property sale, please contact Robb Residential for a confidential chat.
Robb Residential are an Estate Agent based in Glasgow who deal in a range of unique and beautiful properties in the middle-to-prime market in Scotland. For more information, please contact us, email or call on 0141 225 3880.
Note: all statistics, percentages and references are correct at the time of writing.