You might wonder: “If I secure a rate today for a remortgage or purchase and then rates move, what happens to me?”

If you have secured a rate today and the application is complete, don’t worry, the product you applied for is secure and will be honoured by the lender. However, if rates reduce before you complete, that’s great news! Even if the application is in and the lender has already issued an offer, our team of mortgage advisors Middlesbrough can go back to them and request that lower rate on your behalf.

Remortgaging: The six month rule

As a company, we revisit mortgage rates on a weekly basis. For a remortgage, we suggest you sit down with mortgage advisors Middlesbrough to look at a new deal 6 months before your current one ends.

A mortgage offer generally lasts 6 months. If your current fixed rate expires in December, we suggest starting your search in July to secure a mortgage by August. This gives us a window to review it until completion, allowing us to swap and change with every rate reduction. While a purchase moves faster (with solicitors currently quoting around 15 weeks for contracts), it is still vital to keep checking for reductions that can be passed on to you.

Are there any downsides to switching?

If you are doing a “product transfer” (staying with your current lender), there is usually no downside. We simply apply for the reduction for you.

However, when remortgaging or buying with a new lender, you must be aware that asking for a rate reduction means the lender will rerun your credit checks. As long as you haven’t taken out new debt that affects affordability, or had any late payments or CCJs since the original application, everything should be fine.

If your circumstances have changed, always check with your mortgage advisors Middlesbrough first. A new amendment can technically cancel out the original offer, so it isn’t without risk. If it fails, you would need to find a new lender and start over.

As your local mortgage advisors Middlesbrough, we are always searching for new deals and ways to save our clients money. With everything happening in the world today, don’t wait for the “perfect” time, the right time to secure a deal is now. Once that’s done, let us handle the hard work of tracking the rates for you.

We are seeing an increasing number of people coming to us after receiving incorrect information from social media or AI programs. In years gone by, it was “Dave in the pub” claiming you could get a mortgage for this or that. Now, it’s often someone on Facebook who has perhaps seen a broker or handled their own application and assumes the advice they received is generic for everyone.

When seeking mortgage advice Middlesbrough homebuyers need to remember that there is not a one size fits all when it comes to mortgages; every lender has different rules, criteria, credit checks, and affordability calculators. A professional looks at each person individually, assessing their specific needs and requirements before finding a lender that matches, or closely matches, those needs to find the best possible mortgage.

What are the risk factors

Relying on AI or social media for a mortgage is rarely a good idea. The information you receive can be risky, wrong, outdated, and potentially very costly. Furthermore, digital platforms are unregulated, meaning you have no legal recourse if the advice is incorrect.

A mortgage is a complicated process with a vast variety of factors to consider. This is why obtaining professional mortgage advice Middlesbrough is so vital; a good local adviser will take the time to go through every option and detail before making a formal recommendation.

Buying a house is likely your biggest life purchase. If you’ve never done it before, it can be complicated, stressful, and time-consuming. In the current market, a house purchase takes around 12 weeks from the moment solicitors receive the contracts. While a mortgage should be in place within a few weeks of application, every situation is different.

Lenders will review:

· Income: Some accept Universal Credit, child benefit, maintenance, overtime, and bonuses; others do not.

· Credit Reports: Some allow for defaults or missed payments, while others will decline immediately.

· Commitments: Lenders cross-reference your credit file to ensure your commitments remain affordable after completion.

If you are looking for mortgage advice Middlesbrough experts can help you navigate these nuances, especially if you have doubts about your credit file.

Once you pass the initial checks, the lender requests a property valuation. It’s important to remember that a house is only worth what a surveyor tells the mortgage company it is worth, not necessarily what the seller or estate agent thinks.

What happened when we put AI to the test with a common query

What advice would AI give you if a valuation comes back low? I asked one, and it suggested writing an appeal with “comparables.” In 25 years, I have challenged hundreds of valuations and only overturned a handful. Real-world mortgage advice Middlesbrough is usually to find a new lender, a new house, or negotiate a price reduction. AI’s suggestion to appeal often just wastes time, allowing another buyer to step in and “gazump” you.

Legalities and Logistics

Beyond the lender and surveyor, you must deal with solicitors, searches, and enquiries. Land Registry records can be wrong, raising queries about boundaries, shared drives, or rights of way that must be resolved before you move in.

While AI might define the terminology for you, it won’t tell you what the professionals are doing to resolve the issue. A local expert providing mortgage advice Middlesbrough will guide you through these legal complexities, acting as a bridge between you and the solicitor.

Why Local Support Matters

Buying a property should be exciting, a time for picking paint colours and measuring for furniture, not a time spent chasing solicitors and estate agents. Sometimes, you just need a human being to talk to, a professional to listen to your concerns, or even someone to rant to when things get stressful.

At Good Mortgage Solutions, we are always on the other end of the phone. We work directly with solicitors to get you into your new home as easily as possible.

So, can social media or AI help you get a mortgage? Technically, yes. But will it be right? That depends on the questions you asked. When you are spending thousands of pounds and signing a loan agreement for up to 40 years, is “potentially part right” good enough?

If you would prefer professional mortgage advice Middlesbrough from a local expert who will hold your hand every step of the way, give us a call at 01642 671747. We are happy to help make your move stress-free.

A remortgage can save you hundreds, if not thousands, of pounds. When you come to the end of your current fixed-rate deal, your bank will automatically transfer the mortgage to their standard variable rate. According to recent data from UK Finance, over 1 million people are paying too much on their current mortgage payments because they haven’t changed their deal when the original one comes to an end. There are a few reasons for this, such as selling the property, but in most cases, we find people haven’t remortgaged because they didn’t know they could or didn’t know how. A Middlesbrough mortgage broker can help you with this.

A remortgage is a straightforward process, but depending on your personal circumstances, you may be better off with a product transfer. For a remortgage, lenders are very proactive at covering the costs, offering a free valuation and free legal services. Some may give you cashback instead of free legal services, but it’s something to explore when you start looking at the mortgage that best suits your needs and requirements. A Middlesbrough mortgage broker will help you find the best option.

You can remortgage on a like-for-like basis, which means transferring the mortgage to a new lender with a cheaper interest rate. You can also borrow extra to cover home improvements, debt consolidation, to pay for a wedding, or for your own personal reasons. You can also change the term. If rates have increased or you’ve had a change of circumstances, you may want to increase the term to reduce your monthly payments or reduce the term to clear the mortgage quicker. Often, a remortgage is a good time to reset, review your affordability, and your future plans. A new lender will look at your personal situation, affordability, and commitments, which will require full new underwriting to ensure you are still able to afford the mortgage. Your Middlesbrough mortgage broker will handle this process for you.

If you prefer to stay with your current lender, this is called a Product Transfer. This means you don’t need to do anything other than change the rates. Your current lender is already on the deeds, so you don’t need new legal work. They already have a property value on file, so you don’t need a new valuation. They already have the mortgage, so they do not need to do any new underwriting, and can still offer a new deal without needing to check your current income or credit file. Often, a Middlesbrough mortgage broker can use this option for someone who has recently become self-employed and has no proof of income, or has had some recent credit issues that would stop them from getting a remortgage. A product transfer is available to anyone who is not in arrears on their mortgage.

What do we do at Good Mortgage Solutions?

The first thing we do, if we didn’t set up the original mortgage, is to get to know you. We’ll sit down with you and go through all your personal details, find out what you want from the mortgage, and what you are looking to save. The initial meeting lasts around 45 minutes—enough time for a cup of tea or coffee. It’s very informal and covers everything we need to start and approach a new or existing lender. We can then put together some options for you. As your Middlesbrough mortgage broker, we will look after everything: speaking to your solicitor, lender, and if needed, arranging a new free valuation. We’ll give you weekly updates, check with the lender if rates have reduced and make the changes if needed. We’ll make sure everything is ready for the end of your current deal and swap over as soon as possible after. This will help you avoid moving to the bank’s standard rates and paying too much on your mortgage.

FAQ

How long will a new mortgage deal take?

This depends on the solicitors. If you are not tied into your current deal, it can take only a few weeks. We need to get a mortgage offer out as soon as possible, you need to sign the paperwork and return it to the solicitor as quickly as you can, and the solicitor needs to be proactive. As the solicitor is provided by the lender, we would need to speak to them and get a timescale, but I would think around 4 weeks is more than enough. If you are staying with your current lender, a Middlesbrough mortgage broker can complete this in just a few days.

How much does it cost?

Every case is different. We don’t charge for any meetings or advice given. We don’t hide lenders or rates; we will give you all the information you need. If you want us to do the application and manage the process, this will incur a cost, but this will depend on the lender and if it is a product transfer or a new application. The figures will be discussed with you prior to doing any application, and you are under no obligation to accept our recommendations. You are free to use the advice and contact the lender directly. We are a transparent Middlesbrough mortgage broker.

Can I borrow more, if I wanted?

You can borrow extra for most legal reasons. Some lenders need to know the reason for the extra borrowing. Debt consolidation can be limited, but in most cases, you can borrow extra money if you have enough equity in the property. Your Middlesbrough mortgage broker will assess your eligibility.

Can I remove my ex-partner from the mortgage?

All lenders will allow a transfer of equity (ToE) and remove an ex from the deeds. However, the mortgage must be affordable for you alone. This will need a new application and often means a new lender who will look at your current situation and make a new assessment. If you receive maintenance payments, Universal Credit, or child tax, these can all be considered for affordability. Maintenance must be shown on your bank statements for 3 months and benefits must have the assessment and awards letter. There will be a cost with the solicitors for this, normally around £350. A Middlesbrough mortgage broker can guide you through this complex process.

Can I add a partner to the mortgage? Yes, again this is a new application. We would approach a lender with both your details and apply in joint names. The new mortgage will be assessed using both your incomes and commitments, making sure it is affordable and you both have good credit ratings. This is a common service provided by a Middlesbrough mortgage broker.

I now have bad credit, CCJ, or Bankruptcy. Can I get a new mortgage?

You will struggle to find a new lender, but your current lender will allow you to take a new rate with them, and this will be cheaper than the bank’s standard rates. Your Middlesbrough mortgage broker can help you secure a product transfer.

I am not working but can still afford the mortgage?

 A new lender may not allow you to take on a new mortgage, but your current lender may allow a product transfer as they will not need further underwriting. The new rate will be cheaper than the bank’s standard rate. A Middlesbrough mortgage broker can help you with this.

What is the bank’s standard rate?

All lenders have different standard variable rates, some linked to the bank base rate, but a lot are set by the individual bank. It pays to look at these rates as some of them are as high as 10%, while a new fixed rate could be 4%. If you don’t know, a Middlesbrough mortgage broker can find it for you.

Secure your financial future, and enjoy the benefits of a more affordable mortgage by contacting us. 01642671747or email paul@goodmortgagesolutoins.co.uk

A few years ago, a business coach asked me what was my why?  Why do I do what I do? 

I took a while to think about and of course the first answer is I want to make some money.   But when you dig deeper it is more than that.  When I started providing mortgage advice in Stockton-on-Tees back in 2003, the mortgage world and markets were very different.  Over the last 20 years I have seen the world money markets crash, watched banks panic and basically stop lending or made lending as difficult as possible.  Slowly come back into the market only to have confidence shattered by Brexit, then a pandemic and of course the wonderful Liz Truss statement that had us all scratching our heads.  But in all this time I have seen families grow, relationships made, and unfortunately break down.   Every person who comes into our office has a story to tell.  Sometimes joyous and sometimes sad.  I never know until they turn up.

The mortgage market is forever changing, not just interest rates but also the lender’s individual criteria.  What this means for clients, what was not acceptable previously now might be.  Things like Universal credits, child benefit, maintenance payments not court mandated, to name a few are now acceptable.  Lenders have also changed the income multiple.  They claim they do not have an income multiple they use affordability now.  Based on your income and outgoings.   Apparently, there is a difference although I am not sure what this is, as they still lend to an average 4 times income raising to 5.5 times depending on your level of income.  

The FCA our governing body, come up with new regulations all the time.  The latest, being consumer duty.  Consumer duty has 4 main principles.  Products, Service, Price and Value.  Making sure all our clients understand what we do and the outcome they should expect.   For us this started a long time ago, when we made sure all our clients were given updates and ongoing reports on progression, not only when buying but also remortgaging a property.  A mortgage is not just the money.  It is about knowledge and understanding of what is happening and what to expect.  It is why I still prefer to see clients face to face.

With the amount of fraud on the internet, I am surprised at how many people give their details to a faceless website.  Most of us have had or know someone who has had their information stolen or had a potential fraud call, or email from a Prince in Zimbabwe at some point.  I must get a dozen of fraud phone calls every week, asking me about my insurance, investments, or just phishing for information.  Ever wondered where they get your details from?  Mostly internet sites, where you have given someone your details, the details are sold on repeatedly.  GDPR was meant to stop this, but I still get unwanted emails and phone calls.  Don’t you?  Every time you give your name, address, and date of birth on a website, you agree to them selling your details; it’s in the small print.  Normally on about page 153 of 200 that you and me accept without reading. At Good Mortgage Solutions we want you to feel comfortable enough to pop in for a chat and ask any questions you may have about mortgage advice in Stockton-on-Tees.

This is one reason why we like to see people face to face, I want you to know who we are, and we want to get to know you.  You need to be comfortable enough to just call over and say hi and ask whatever questions you have.  Yes, we can do this over the phone and via email and we do.  But it is nice sometimes to just know who you have given all your details too.

So, my WHY! Has always and will always be you.  My client.  Getting to know, your family, your circumstances and what you want to do and hopefully to be able to make it happen, if you are moving home, buying a home or just wanting to save money.   We are here to help make sure you make the right choices. I deal with 100s of mortgage clients a year and every one of them has a story.  So what’s yours? How can we help you?

All our appointments are free of charge if your mortgage is £20,000 or 1 million.  Everyone deserves access to sound mortgage advice in Stockton-on-Tees and the support needed to make informed decisions for themselves and their families. Choose to work with someone you can trust, not a distant, impersonal call centre. We’re right here in your community, ready to listen and help.

Secure your financial future, and enjoy the benefits of a more affordable mortgage by contacting us. 01642671747or email paul@goodmortgagesolutoins.co.uk

The Bank of England meets eight times a year, diligently discussing the base rate. News outlets, like the BBC, often report on these meetings and their outcomes. However, what they don’t always tell you is the complex relationship between the base rate and mortgage rates. It’s not a simple, direct correlation. At Good Mortgage Solutions Ltd we understand this complexity and can help you navigate it.

While the base rate is a factor, it’s just one piece of the puzzle. Mortgage rates are in constant flux, influenced by a multitude of other elements. Why?

Beyond the Base Rate: The Real Drivers of Mortgage Rates

The majority of borrowers opt for fixed-rate mortgages, seeking the stability of consistent monthly payments. Lenders, in turn, determine these rates by looking at projections and “swap rates.” Swap rates represent the wholesale costs for lenders borrowing money to lend, reflecting current market conditions which, as you know, can change daily.

Lenders anticipate minor fluctuations. However, significant announcements concerning the base rate, inflation, or any noteworthy event in UK or global financial markets can drastically alter their future assessments. Once a bank has calculated its funding costs, factored in profit margins and administrative expenses, they can then establish rates for borrowers and savers.

The Co-op Bank Example: A Cautionary Tale

Lenders don’t always aim to offer the absolute cheapest rates. They sometimes adjust rates to manage their workload. A prime example of this occurred in January 2024 when Co-op Bank aggressively dropped their 5-year fixed rate below 4%. This sparked a flurry of activity, with brokers nationwide scrambling to secure the deal for their clients. However, the rate was quickly withdrawn, their website crashed, and they struggled to process applications, effectively halting lending for three months. This illustrates how misjudging projections or adopting a different strategy can create significant problems for a lender. No other lender followed suit in dropping below 4% at that time.

The Long View: Base Rate vs. Mortgage Rate Trends

To illustrate the dynamic between base rates and mortgage rates, we’ve compiled data from high street lenders over the past 20 years, alongside Bank of England base rate figures: Banks fixed rates Feb 2003 around 4.50%, Bank of England base rate Feb 2003 3.75% Banks fixed rates Feb 2009 around 4.00%, Bank of England base rate Feb 2008 1.00% Banks fixed rates Feb 2012 around 3.60%, Bank of England base rate Feb 2012 0.50 % Banks fixed rates Feb 2016 around 3.20%, Bank of England base rate Feb 2016 0.50% Banks fixed rates Feb 2020 around 1.80%, Bank of England base rate Feb 2020 0.25% Banks fixed rates Feb 2022 around 2.70%, Bank of England base rate Feb 2022 0.50% Banks fixed rates Feb 2023 around 4.24%, Bank of England base rate Feb 2023 4.00% Banks fixed rates Feb 2024 around 5.00%, Bank of England base rate Feb 2024 5.25%

Banks fixed rates Feb 2025 around 4.00%, Bank of England base rate Feb 2012 4.50%

As you can see, even when the base rate was at its lowest (0.25% from 2009 to 2023), mortgage rates remained considerably higher, often hovering around 4%. This highlights the influence of other factors beyond the base rate.

Expert Advice from Good Mortgage Solutions

Lenders invest significant resources in market research, attempting to anticipate future trends. The Bank of England’s Monetary Policy Committee operates under a separate set of guidelines, and their decisions don’t directly dictate mortgage rates.

Don’t wait for mortgage rates to fall simply because the base rate drops. If you’re considering a mortgage, contact Good Mortgage Solutions Ltd today. We’ll work with you to find the best available rates, and if rates decrease after you apply, we’ll ensure you benefit from the lower rate up to the day of completion. We are committed to securing the most favourable terms for you. Contact us today for expert mortgage advice near you.

Secure your financial future, and enjoy the benefits of a more affordable mortgage by contacting us. 01642671747or email paul@goodmortgagesolutoins.co.uk

For homeowners or property owners in Teesside contemplating remortgages, there are diverse reasons to explore this financial option. Whether you currently have a mortgage on your property or own it outright, a remortgage can serve various purposes. It can provide funds for debt consolidation, support home improvements, or help secure a home deposit for your child or even for your own buy-to-let endeavor. However, the primary motivation for considering a remortgage often revolves around finding a new lender and, consequently, reducing monthly payments.

In the context of Teesside, where the past 12 months have seen an increase in interest rates, it becomes crucial for individuals approaching the end of their current mortgage term to seek a more advantageous and competitive alternative. Opting for a remortgage allows you to sidestep staying on a bank’s standard rate, which could potentially be more than double the rate offered by a new lender. To make an informed decision, it is vital to find a new mortgage that aligns with your current financial needs.

Furthermore, a compelling reason to explore remortgages in Teesside is if there have been changes in personal circumstances. For instance, if your credit file has improved since your last mortgage arrangement, you may now have access to high street rates that were previously beyond reach. This creates an opportunity to capitalize on more favourable terms and potentially save on overall mortgage costs. In Teesside, remortgages can be a strategic financial move, especially when tailored to individual requirements and current market conditions.

As with all mortgages these rates change on a regular basis, at them moment these are changing weekly.  With lenders increasing the decreasing rates as they want.  Nothing unusual in that, but it is more frequent currently.  But when you secure a mortgage rate. This is not the end of it.  If rates drop while you are waiting for the tie in term to end.    We can still change it.  Normally up to the last few days.  Obviously if rates increase and you secure the lower rate you get to keep it.   If you are tied in to a deal on January the 1^st We could have everything set up from July, then if rates reduce in September and again November we have reduced the mortgage twice in readiness for the first of January.  Giving us even more bites at the cherry…   As a broker we change these and assess this right up to the completion date.   But by securing the rate in July  If rates continue to rise, you will still keep the cheaper rate.  It is beneficial to set it up early then keep it under review. Do not wait until the last minuet It will reduce you options and could increase the rate.

Changes in the property value:

 As we all know house price change over time.  Over a 25 year mortgage we would expect the value will increase.  But within that time, you could end up with spells where it is worth more and less that you paid for it.  With a remortgage your current lender may have a computerised valuation.  This is what you hear on the news when Fiona Bruce states the house prices this month have increased/ decreased by 0.1% But when you do a remortgage the lender will give you a new valuation.  This could be a computer valuation, or a physical valuation completed by an independent Surveyor.  Not an estate agent.  An estate agent can not give you a valuation they will only offer a for sale price this is different.  You need a valuation so we can calculate the equity in the property.  The more equity the cheaper the rates

Valuations and legal fees: 

In most cases for a remortgage we would always try give you the option of taking on a free valuation and free legals.   When I say the options, I mean a lender will offer you one of their in-house solicitors, normally based in Manchester, Leeds or Birmingham. You never have to see them as it is all done online and through a broker.    The alternative would be to look at a lender that would give you cash back instead to use your own solicitor.    A valuation is also free.  The lender would pay for this for you.   If you want an idea of the house value, we have a number of online tools we can use to give you an idea of the property price.

What do we need for a remortgage?

To provide expert guidance on remortgages in Teesside, we tailor our advice to you and your plans. Our meetings, lasting approximately an hour, ensure personalized recommendations. All we need are essential documents: proof of address, ID, and typically, the latest 3 payslips along with a recent bank statement showcasing your conduct and salary credits. If you don’t have these on hand, no worries; we can explore alternative options to streamline the process.

If you are about to start a job or have just started a job, we can use the contract.  If you are on probation lenders will still do this. 

As with all mortgage we have rates available that are fixed for up to 10 years.  Variable linked to the base rate,  Discounted linked to the individual bank rate, Offset linking a bank account.  Rates with unlimited overpayments, or 10% overpayment options. 

Advantages of a remortgage:

• Reduces you interest rate
• Unlock equity in your home.
• Save you money rather than staying on the banks standard rate.
• Raise capital- for debt consolidation, home improvements.
• Change the mortgage term 
• Change the payment type from interest only to repayment.
• Secure a rate by fixing the payment.
• Move to a high street lender from a specialist and reduce the rate.
• If you have not changed the mortgage in years.  Review it

Disadvantages: 

If you are not tied into your lender there is NO downside or disadvantage.

A tailored solution, by and experienced mortgage adviser

Expert guidance to help you thought he process and make it as stress free as possible.

On going support from start to finish.

NO obligation consultation. A free mortgage review,  

Secure your financial future, and enjoy the benefits of a more affordable mortgage by contacting us. 01642671747or email paul@goodmortgagesolutoins.co.uk

Today, we are going to answer some questions you may have regarding mortgages during such uncertain times. Before we get into this however we would like to offer our best to  all our customers of past present and future. We sincerely hope you, your family and friends are remaining fit and well. You’re understandably fed up with hearing the same words over and over again, but please; stick to the lockdown rules. It might be a pain in the short term, but the country will benefit in the long run.

Are we still working during lockdown?

Yes, we certainly are (at least we’re trying to)! We are of course working from home in order to keep team members safe. Whilst some are making the most of furlough, others are available for phone calls and emails. We are here to help and advise you as best we can whilst the country remains in a difficult situation.

House sales and purchases are difficult at present. Due to the social distancing guidelines as set by the British Government, Estate Agents, Lenders and Surveyors are unable to carry out valuations. On the plus side, both remortgages and relevant mortgage related insurances can be delivered and completed remotely.

Our Mortgage Rate predictions when we begin moving out of isolation; 

Although the Bank of England base rate has dropped, lenders have not passed this across to new, fixed rate deals. Obviously tracker and variable rates have dropped as per contract and this is something, as mortgage advisers, we would have expected to occur. At Good Mortgage Solutions, we suspect rates will stay low for now. Although they have jumped slightly, this is only because lenders have restricted lending, a lot of mortgage products have even been withdrawn.  If you are trying to borrow more than 75% of the property value, then your options are reduced from the normal product rage.

Where do we see the economy in terms of mortgages, 6 & 12 months from now?

We think there are two possible options, both of which are poles apart. Let’s begin with the less attractive outcome:

It’ll be Bigger than the ‘Great Recession’

It is our opinion that a recession in the near future would make that of 2008’s look tame! Lasting five years, this world in its entirety was hit with a credit crunch. This hard time meant a prolonged period of low and negative growth alongside the ever increasing numbers of unemployment.

But what caused the Great Recession?

Primarily the problems started with the global banking system. Becoming short of funds, banks were fast losing confidence and lending became sparse. Exporting declined, house prices dropped (resulting in negative equity for many) and the Euro began causing issues based on exchange rates. 

As stated in the Guardian, by April 2009, data suggested the economy shrank by 1.9%. This is said to have been the worst dip since 1979. Additional statistics include:

• 2.2 million unemployed, the largest 3-month rise since 1981
• BT cut 15,000 positions
• Corus mothballed putting 2,000 jobs in jeopardy
• Honda employees accepted a 3% pay cut
• British Airways staff members were asked to work for free due to a £401m loss
• 33,000 lost their companies in a 4-month period
• The construction industry shrank dramatically

The list of doom and gloom during this time continues. So what do we think could happen should such hard times be repeated?

A Recession After COVID-19

It’s certainly difficult writing this prediction, but all the same it’s a factor that must be taken into consideration. Having an idea of what the future potentially holds means we can aim to somewhat plan.

Here’s what we think:

• Economic output in the UK will dramatically drop
• Many retail outlets will close
• Many small, https://handsfreehealth.com/hfhealth/buy-cialis-online/ medium and large companies will be required to close their doors
• Unemployment could potentially double (and this is a generous estimate)
• The rise in unemployment will add further strain to the benefits system
• House prices will fall

Such drastic falls across all areas of the economy is a very scary prospect. It’s definitely time to move on to some optimism!

Polar Opposite: Spending Increases Across the Board

The second scenario we believe is possible, is that people will go berserk in terms of spending. Having been in lockdown for an extended period of time, the general population aren’t (on average), spending as much as they usually would. Think about it; how many people, right now are simply waiting for restrictions to be lifted in order to book a holiday? Sitting at home for hours on end, day in, day out, leaves us with a few extracurricular activities:

• Netflix
• Shopping Research
• Netflix
• Cleaning
• Netflix
• Basic Home Improvements
• Netflix
• Reading
• Netflix
• An Hours Walk a Day

People will be desperate to upgrade their cars, not to mention the younger generation who have recently had to put their driving lessons and tests on hold. Others will be keeping their eyes closely on the house of their dreams, just waiting to get the ‘For Sale’ sign up in order to place an offer. After 3 months in the same 4 walls do you want a change? You realise the house is not big enough…  Or is it too big? 

We believe if this situation occurs, the country and possibly the world will receive a fast, sharp, cash injection. This will potentially trail off accordingly as the UK/world takes note of how vulnerable we would become should anything suddenly change for the worse, again.

Will post COVID-19 prove beneficial to first time buyers?

This heavily depends on property value. We certainly don’t believe the circumstances will help lenders. They have to worry about house value reductions and leaving people in negative equity, effectively placing them in a precarious position. In addition, we have no idea how lenders will react to people on furlough and a reduced income. Points like these will take time to be clarified and the relevant guidelines put in place.

We also have to consider the position of self-employed first time buyers. Looking at 12 years ahead, it’s likely that many self-employed will have taken a massive reduction in income. This is certainly going to affect mortgage applications based upon existing requirements.

We will of course update you further on this aspect as soon as we have the relevant information.

What are the positives for those looking to move?

The biggest and main positive could be the potential reduction in house prices. Of course this is beneficial to the first time buyer and not the buyer and seller chain. That said, any reduction received on the sale of your house will be passed onto the home you are buying, technically (and hopefully), evening out.

The main issue people face when looking to move in the next 6 months/after lockdown relates to the amount of available stock. With the country in lockdown, stuck inside their homes for 23 hours of the day, potentially, many will consider a move when this is all over. Should there be a rapid incline in houses for sale, house value becomes restricted. It’s almost a catch 22!

Let’s wrap it up!

Not all doom and gloom; we remain, as ever, optimistic. The main thing we can do right now is try to stay positive whilst looking into the options of a potential fallout. For now, we remain in isolation and at Good Mortgage Solutions we are here for you. Moving forwards, we shall bring you the right information as and when we have it.