The Covid-19 pandemic crisis has had a significant impact on all aspects of the UK economy. Tenants and landlords are both at financial risk, and there is no way of knowing how severe the pain of paying for the crisis response will be for the entire UK, for both individuals and corporations. While some homeowners may eventually lose their homes due to foreclosures, real estate experts do not anticipate another foreclosure crisis like the one the country experienced in the mid-aughts. The Covid-19 lockdown had an impact on mortgage marketing in a variety of ways.
- Mortgage approvals fell because lenders were unable to conduct physical property valuations due to social distancing rules. As a result, mortgage approvals have decreased.
- Lenders tightened their lending criteria – many lenders raised the deposits required for mortgages.
- In view of the uncertainty, some lenders have pulled mortgage deals from the market, reducing the number of options for customers shopping around.
- Mortgage holidays have skyrocketed, with over 1.6 million homeowners taking a break from repaying their mortgage due to the impact on their income.
- Mortgage interest rates have fallen as a result of the Bank of England lowering the base rate to 0.1 percent.
Based on the advice of professional business consulting service provider and financial research analysis the mortgage industry was able to adapt to the circumstances of COVID-19 relatively quickly. Most lenders now allow the lenders to apply for, and even close, a new mortgage or refinance without leaving their homes. People looking for a new mortgage or refinancing may expect delays in processing. Many banks are also extending grace periods for people with existing mortgages who have been impacted by COVID-related layoffs and furloughs, so if people are experiencing financial hardship, they should inquire about their lender’s current practices. The COVID-19 pandemic may be a huge shock to UK mortgage market, but it may simply accelerate changes that are already taking place.