Among the demoralising atmosphere in the mortgage market of the UK, a severe drop in mortgage enquiry is another reason for worry. To keep the situation under control, the Bank of England pulls down the rate to the unprecedented level of 0.1%. Now it has also applied a temporary freeze to the market. To prevent the spread of the market, it has become necessary to work on such measures.
The steep decline is 37% from March to April. The corona pandemic is showing its dominating effect since prolonged, and this recent decrease in mortgage enquiries is a reciprocation of the chaos. Trussle, the online mortgage broker has revealed similar facts from its research.
A big reason behind the low zeal in the market is the pullback of the mortgage products by the brokers. It has left many property buyers in a fix as they are not able to get their desired deals. They are trying hard to find at least one mortgage broker that can help them get smoothly on the property ladder. In March start there were 5,222 deals and in May starting it is 2566.
But….good chances for remortgage seekers
The first time home buying can be stressful due to less number of options, but cheaper deals are available on a remortgage. It is easier now for the borrowers to find new possibilities with a hugely lower cost. Also, the luxury of the multiplicity of choices is there to explore and exploit.
The existing mortgage holders are in benefit too
Due to the new rules applied by the government and FCA, the existing borrowers may can a 3-month mortgage payment holiday. Good news for the loan holders and a reason for stress for the lenders. However, ultimately the property buyers have to bear the added interest rates when the payment holiday period gets over.
But things are getting regular, and property viewing with an adequate concern on social distancing is also gaining back their pace.