COVID19: UK Government suspends property market till further notice

The housing market was halted on Thursday night by the Government after financial institutions said they could no longer operate properly.

Ministers are discouraging buyers from going ahead with house sales and purchases unless they have ­already exchanged contracts as part of wider efforts to slow the spread of the coronavirus, saying no one should move unless absolutely necessary. ­

As a result of the pandemic, homeowners trying to sell their properties face a year of misery as the number of buyers dwindles, estate agents close their doors, banks withdraw deals and house prices falling.

See the source image

Banks and building societies have agreed to extend mortgage offers where completions have to be delayed as a safety precaution.

Grainne Gilmore, head of research at Zoopla, commented: “The clarity provided by the government announcement is welcome for buyers, sellers and agents who are in the middle of the sales process.

“Agents continue to support their buyers and vendors remotely. But, now that there is some leeway on mortgage offers – with a three month extension from lenders – this will enable some buyers to press pause, and to re-start their purchase once the current social distancing rules are relaxed.”

What does it mean if you’re buying?

You should only consider going ahead with your move in the immediate term if you have already exchanged contracts.

If you have not yet exchanged contracts, the government are advising you to delay doing so.

See the source imageBanks and building societies have agreed to extend mortgage offers for up to an additional three months to enable customers to move at a later date without losing the deal they had lined up.

If your circumstances change during this period or the terms of the house purchase alter significantly, meaning that continuing with the mortgage would put you into financial hardship, lenders have pledged to work with you to manage your finances as a matter of urgency.

What it means if you are selling?

Putting your property on the market will be more challenging than usual, as you are not allowed to have visitors to your home.

As a result, you will not be able to have estate agents come to take photos or carry out a physical market appraisal, while Energy Performance Certificate assessors are also not allowed to visit you.

If your home is already on the market, you can continue to advertise it for sale, but people cannot come to physically view your property.

Importantly, you are still allowed to accept offers on your property during the current period.

In fact, the number of sales agreed between March 16 and March 22 were only 4% lower than a year earlier.

Source: Zoopla Property News

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Dennis Bebo – MSC, BSC, DEA, CeMAP

TA DenEco Consultancy – www.deneco.co.uk

What must a mortgage lender do if a borrower is in arrears

The Financial Conduct Authority (FCA) considers that a reasonable period for repayment of arrears or a shortfall will depend on the borrower’s circumstances. In some cases, it can mean spreading the payments over the remaining mortgage term.

The lender must not attempt to process more than two direct debit requests in any one calendar month

See the source image

A mortgage lender must also establish and implement clear, effective and appropriate policies and procedures to ensure the fair treatment of customers whom the lender understands, or reasonably suspects, to be particularly vulnerable.

If a borrower is in arrears, the lender must consider whether one or more of the following actions would be suitable to help resolve the problem

  • extend the mortgage term;
  • change the mortgage type;
  • defer payment of interest due on the mortgage or sums due under a home purchase plan;
  • treat the payment shortfall as if it was part of the original amount – know as capitalisation and effectively adding the shortfall to the capital owing;
  • make use of any government forbearance schemes to help borrowers with problems.

Please contact your lender as soon as possible if you’re experiencing financial difficulties to get a suitable solution.

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Thinking of buying a property?

Need help with residential and commercial property purchase/finance in the UK from start to finish, Please Contact me

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Dennis Bebo – MSC, BSC, DEA, CeMAP

TA DenEco Consultancy – www.deneco.co.uk

 

Property Ombudsman conference postponed due to COVID 19

The Property Ombudsman has announced that it will postpone its annual conference, which was to have been on June 18, until next year.

In its place, TPO will be holding a Rightmove Webinar on the same morning.

Katrine Sporle, who retires as TPO later this year, says: “Given the circumstances affecting us all, we have decided to convert the conference in Solihull to a Rightmove Webinar to take place on the morning of June 18. We will provide updates, advice and interactive sessions to respond to agents’ questions and concerns.”

See the source image

TPO’s office says tickets already purchased will be credited towards the 2021 conference “when normal business resumes.”

Meanwhile a statement from the organisation says it’s business as normal at The Property Ombudsman, with many of its staff managing to work remotely to provide a normal service.

However, TPO says that the priority for agents is of course to ensure the welfare of their employees and advises: “Therefore, if services have to change and complaints cannot be dealt with in the usual way, agents should ensure this is communicated to complainants in writing.”

Should a complaint then be subsequently escalated to TPO, this will be taken into account.

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Thinking of buying a property?

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Dennis Bebo – MSC, BSC, DEA, CeMAP

TA DenEco Consultancy – www.deneco.co.uk

Brexit: Things that will change or remain after 31 January

The UK formally leaves the European Union (EU) at 23:00 on Friday, 31 January. But it will immediately enter an 11-month transition period.

During the transition the UK will continue to obey EU rules and pay money to the EU. Most things will stay the same but there will be some changes:

Things that will change

  1.  UK MEPs lose their seats See the source image

  2. No more EU summits

  3. We will be hearing a lot about trade

  4. The UK’s passports will change colour British passports

  5. Brexit coins See the source image

  6. The UK’s Brexit department shuts down

  7. Germany won’t extradite its citizens to the UK

Things that will stay the same at least until 31 December 2020

  1. Travel People at an airport walking under a sign saying "arrivals from the European Union".

  2. Driving licences and pet passports See the source image

  3. European Health Insurance Card (EHIC) A hand holding a European Health Insurance Card

  4. Living and working in the EU See the source image

  5. Pensions

  6. Budget contributions

  7. Trade

Source: BBC News

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Thinking of buying a property?

Need help with residential and commercial property purchase/finance in the UK from start to finish, Please Contact me

Selling or renting your property in Greater Manchester? Get same day EPC for £45 only

Dennis Bebo – MSC, BSC, DEA, CeMAP

TA DenEco Consultancy – www.deneco.co.uk