How will the lockdown affect your mortgage and home buying plans? Dale Jannels of Impact Specialist Finance offers a quick rundown of the support on offer to homeowners and new borrowers alike
As we move into the second – and hopefully final – national lockdown in England, we realise how difficult it can be for people to appreciate exactly how their property-related needs are being impacted now, and in the future.
So, let’s highlight a few of the more recent announcements, although with things changing so quickly it’s vital to keep up to date as possible in these important areas.
Mortgage payment holidays
Mortgage payment holidays are being extended for homeowners financially affected by the pandemic.
Borrowers who have not yet had a mortgage holiday can request from their lender a pause in repayments, which can last up to six months. Those who have had their payments deferred already can extend their mortgage holiday until they reach the six-month limit.
Job support
In other ‘news’, chancellor Rishi Sunak has just confirmed that he will extend the furlough scheme until the end of March. The scheme will pay up to 80% of a person’s wage up to £2,500 a month and the government is expected to review the policy in January.
Self-employed workers will be able to claim 80% of trading profits for November, before the level of support drops to 40% in December and January.
The payment for all three months will form a single grant, equivalent to 55% of trading profits for the whole period, capped at £5,160. Self-employed traders suffering from reduced demand or unable to work due to the coronavirus are eligible for the payments.
Help to Buy
Looking further forward, the Help to Buy scheme is in the process of changing and from April 2021 this will be limited to only first-time buyers, with regional price caps in place for which properties will qualify for the scheme across different areas of England.
Add the fact that lenders are changing product details on a daily basis and this really does highlight that the need for good, professional property-related advice has never been more apparent – whatever your financial circumstances.
So, if you would like to speak to an adviser about current market conditions or how we can help you achieve your homeownership or investment aspirations then contact us today on 01403 272625 or visit our website.
Dale Jannels is managing Director at Impact Specialist Finance
