After the spread of the news of house price fall, the UK mortgage market is stunned. Again, the cause if corona pandemic. The Bank of England figures that reveal the drop in mortgage lending has left the people with countless uncertainties. However, the current situation has received a mix of emotions in the name of response.
The twitter overflowed with the comments on the situation, provides a mirror image of the minds of the people.
Some of the twitter comments
“If you are stupid enough to buy a house this year, make sure you get at least 20% off the asking price, then another 15% off the agreed price.”
“It’s good news day unless you’re a BTLetster.”
“Though this may seem a dramatic fall, it is not as steep as many had expected and prices remain nearly 2% higher than they were this time last year.”
How differently people have replied to the current situation, and one thing is sure that the revival of the market is not an easy thing.
Some facts describe the severity of the situation in a better manner –
- 7% of price fall on house prices in May, which is the biggest monthly fall after February 2009.
- The sharp decline in mortgage activity. 53% fall in a property transaction in April as compared to April 2019. A profound and drastic change. It is a matter of worry for lenders as well as online mortgage brokers.
- Number of mortgage approvals in March were 56,100, and in April it is 15,800.
The current situation is nothing but a maze, and the property buyers, lenders, brokers, local agents are trying to find an escape. Time and future conditions of corona pandemic are the two essential factors that will act decisively.