Mortgage shortage coming as lenders start to tighten
their belts, due to Coronavirus
their belts, due to Coronavirus
Mortgage loans will be squeezed as lenders reduce number of products
Mortgage lenders will start to slash the availability of competitive
mortgage products, loans and other credit during the coming weeks despite consumer
demand.
mortgage products, loans and other credit during the coming weeks despite consumer
demand.
Banks have informed the Bank of England that the supply of credit
will fall this summer due to coronavirus pressures.
will fall this summer due to coronavirus pressures.
This will be a blow to the UK economy, the housing market house
buyers who need to borrow.
buyers who need to borrow.
The credit ‘crunch’ could mirror the position a decade ago
after the financial crisis of 2008, although this recession has not been caused
by a banking crisis.
after the financial crisis of 2008, although this recession has not been caused
by a banking crisis.
The financial downturn led to a withdrawal of loans and
mortgage products for first-time buyers and buy-to-let investors.
mortgage products for first-time buyers and buy-to-let investors.
Lenders have already started taking a cautious approach to
offering home loans, which is understandable in the current market where borrowers
face uncertainty over their jobs and income. Lenders fear the number of borrowers
defaulting on repayments could rise again.
offering home loans, which is understandable in the current market where borrowers
face uncertainty over their jobs and income. Lenders fear the number of borrowers
defaulting on repayments could rise again.
There is only one 2-year fixed-rate mortgage deal for
borrowers with a 5% deposit, compared with 137 before the coronavirus crisis,
according to Moneyfacts.
borrowers with a 5% deposit, compared with 137 before the coronavirus crisis,
according to Moneyfacts.
For those with larger deposits, there is more choice, but
the rates and fees have gone up, despite record low interest rates.
the rates and fees have gone up, despite record low interest rates.
Is it still worth investing in buy-to-let property?
Investment in buy-to-let properties can still be profitable
when done professionally. However, there are still many other opportunities
to make money in property without the need for buy-to-let mortgages, large
deposits or high rates of tax.
when done professionally. However, there are still many other opportunities
to make money in property without the need for buy-to-let mortgages, large
deposits or high rates of tax.
1.
Mortgages will become more difficult to
obtain with less products
Mortgages will become more difficult to
obtain with less products
2.
Mortgages are more expensive and less
competitive fixed rate offers
Mortgages are more expensive and less
competitive fixed rate offers
3.
Demand for new mortgages is down say
lenders due to lockdown
Demand for new mortgages is down say
lenders due to lockdown
4.
Government planning CGT ‘tax grab’ on buy-to-let
property investors
Government planning CGT ‘tax grab’ on buy-to-let
property investors
5.
“No DSS” tenant blanket ban by buy-to-let
landlords ruled ‘unlawful’ by Judge
“No DSS” tenant blanket ban by buy-to-let
landlords ruled ‘unlawful’ by Judge
6.
UK economy grew by 1.8% in May, 24.5%
smaller than it was in ONS reports
UK economy grew by 1.8% in May, 24.5%
smaller than it was in ONS reports
7.
UK's mobile providers will be banned from
buying new Huawei 5G equipment
UK's mobile providers will be banned from
buying new Huawei 5G equipment
8.
Singapore’s economy plunged by 41% in the
last quarter the largest fall ever
Singapore’s economy plunged by 41% in the
last quarter the largest fall ever
9.
Nationwide now lending 90% for first time
buyers reversing previous change
Nationwide now lending 90% for first time
buyers reversing previous change
10. Stamp
Duty slashed until 31 March 2021 by raising the threshold to 500,000
Duty slashed until 31 March 2021 by raising the threshold to 500,000
11. Chancellor
Rishi Sunak keen to boost the property market and “build build build”
Rishi Sunak keen to boost the property market and “build build build”
13. Opportunity
is everywhere for everyone, especially in property! But you have ACT!
is everywhere for everyone, especially in property! But you have ACT!
14. Even
the 'Secret law of attraction' requires you to get off your ass and TAKE
ACTION!
the 'Secret law of attraction' requires you to get off your ass and TAKE
ACTION!
15. Homeowners
will get vouchers of up to £5,000 for energy-saving improvements
will get vouchers of up to £5,000 for energy-saving improvements
16. The
poorest will receive up to £10,000 in £2 billion energy saving grant scheme
poorest will receive up to £10,000 in £2 billion energy saving grant scheme
17. Will
your job be one of millions phased out by automation, innovation and AI?
your job be one of millions phased out by automation, innovation and AI?
19. Time
to your economy or Uconomy started whatever the economy is doing!
to your economy or Uconomy started whatever the economy is doing!
20. You
can create a second income during the lockdown…and come out stronger
can create a second income during the lockdown…and come out stronger
Millions of people face a bleak future post-Coronavirus
lockdown, as businesses disappear and the job furlough scheme eventually comes
to an end. However, life doesn’t have to end because of lockdown! You can join
thousands of ordinary people who have increased their income and added
streams of new income during this period.
lockdown, as businesses disappear and the job furlough scheme eventually comes
to an end. However, life doesn’t have to end because of lockdown! You can join
thousands of ordinary people who have increased their income and added
streams of new income during this period.
Are you ready to adapt to the new economic model?
As lockdown restrictions around the world are being eased,
the economic model has subtly changed forever. How will you adapt to this new
way of working and running a business, what obstacles and opportunities lies
ahead? Will you be a participant or spectator in this revolution?
the economic model has subtly changed forever. How will you adapt to this new
way of working and running a business, what obstacles and opportunities lies
ahead? Will you be a participant or spectator in this revolution?
By Charles Kelly, Property Investor, Author of Yes, Money
Can Buy You Happiness and creator of Money Tips Podcast.
Can Buy You Happiness and creator of Money Tips Podcast.
There are more examples and practical
steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3
R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it
out on Amazon http://bit.ly/2MoneyBook.
steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3
R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it
out on Amazon http://bit.ly/2MoneyBook.
If you’d like further information on how to survive the
crisis and even quit the rat race, email me at Charles@CharlesKelly.net
or send me a message through Facebook or my Money Tips Daily community. See
more articles at www.moneytipsdaily.com
crisis and even quit the rat race, email me at Charles@CharlesKelly.net
or send me a message through Facebook or my Money Tips Daily community. See
more articles at www.moneytipsdaily.com
Join the
free training here: https://bit.ly/3gLXaKW
free training here: https://bit.ly/3gLXaKW
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