What Lockdown 2 means for your property transaction
As widely expected, over the weekend the government announced that another, month-long lockdown across England will come into effect this Thursday. This lockdown is very different from the one in the spring – then, the property market was frozen for six weeks as it was forced to close completely, with viewings and surveys cancelled, and only essential moves allowed. This time around, the housing market will remain open, according to housing secretary Robert Jenrick, allowing buyers and tenants to move as long as social-distancing measures are observed.
Mortgage payment deferrals will also be extended for those struggling to pay their home loan. This scheme was meant to end on 31st October but the Financial Conduct Authority has wisely stepped in and said it will continue, although we await final details.
Stamp duty rush
With many buyers already feeling the pressure of trying to complete on their purchase ahead of the end of the stamp duty holiday in March, the news that the housing market is not shutting for business will come as a relief. Reports suggest that even without a lockdown putting everything on hold, buyers will be hard-pushed to get their purchase completed by March as lenders are inundated with business, while surveyors and solicitors are also finding it difficult to keep up with demand. A saving of up to £15,000 on every property purchase is proving extremely tempting and focusing buyers minds on their move like nothing else.
On top of this, of course, the prospect of another lockdown is likely to make people even more determined to move. A lack of space, both inside and out, and less need to be near a station for commuting into a big city or town, means people’s options have widened and many simply don’t want to waste more time in delaying a move.
Sensibly, the government realises just how important the housing market is to the economy. Removal firms and estate agents will be able to continue to operate. Construction sites can stay open, while tradespeople will be able to enter homes to carry out work. Hardware stores and builders merchants will also remain open. If property purchases are allowed to continue, it will result in the employment of many builders, plumbers, electricians, architects, advisers and the like, at a time when many are fearful for their future employment.
Funding your property purchase faster
MT Finance can help you purchase residential, commercial, and semi-commercial property We can even help with uninhabitable property purchases- as long as the asset is wind and water tight. We will also take a view on CCJs, defaults, and arrears and we do not require personal guarantees, a minimum credit score, or proof of income – instead, we focus on the property and your future plans for it.
We are often able to make lending decisions within hours of initial enquiry and regularly deliver funds in a matter of days- crucial for those trying to secure quick deals on properties. Why not give us a call on 0203 031 2331 to see how a bridging loan from MT Finance can help? Alternatively, fill in our contact form and someone will be in touch with you shortly.