Mortgage shortage coming as lenders start to tighten 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.
Banks have informed the Bank of England that the supply of credit 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.
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.
The financial downturn led to a withdrawal of loans and 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.
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.
For those with larger deposits, there is more choice, but 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.
- Mortgages will become more difficult to obtain with less products
- Mortgages are more expensive and less competitive fixed rate offers
- Demand for new mortgages is down say lenders due to lockdown
- Government planning CGT ‘tax grab’ on buy-to-let property investors
- “No DSS” tenant blanket ban by buy-to-let landlords ruled ‘unlawful’ by Judge
- UK economy grew by 1.8% in May, 24.5% smaller than it was in ONS reports
- UK’s mobile providers will be banned from buying new Huawei 5G equipment
- Singapore’s economy plunged by 41% in the last quarter the largest fall ever
- Nationwide now lending 90% for first time buyers reversing previous change
- Stamp Duty slashed until 31 March 2021 by raising the threshold to 500,000
- Chancellor Rishi Sunak keen to boost the property market and “build build build”
- New planning rules will open up more opportunities to make money in property
- Opportunity is everywhere for everyone, especially in property! But you have ACT!
- Even the ‘Secret law of attraction’ requires you to get off your ass and TAKE ACTION!
- Homeowners will get vouchers of up to £5,000 for energy-saving improvements
- The poorest will receive up to £10,000 in £2 billion energy saving grant scheme
- Will your job be one of millions phased out by automation, innovation and AI?
- You don’t need your own money to create a second income in property
- Time to your economy or Uconomy started whatever the economy is doing!
- You can create a second income during the lockdown…and come out stronger
- Learn how to make money from property without deposits, mortgages or cash
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.
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?
By Charles Kelly, Property Investor, Author of Yes, Money 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.
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
19th July, 2020
7:00 PM (UK)
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