Coronavirus has put the property market on ice for the foreseeable future. 85% of Multipliers who plan to buy a home say the current situation is affecting their plans.
In the long term, there's no reason why the pandemic should call a halt to your home owning ambitions. However, in the short term it might throw a spanner in the works.
Although the government has asked us not to move house, you are still allowed to buy property. However, many people are delaying their plans.
People who are self-isolating or shielding, and can't leave the house at all, should put all plans to move house on hold.
Owners are (technically) allowed to put their property on the market...but they're not meant to hold viewings. That means many would-be sellers have withdrawn their properties from the market.
If you haven't already found the place you want, you'll have to do viewings remotely via video call rather than seeing it in person.
It's not an easy time to apply for a mortgage. Some providers, like Nationwide, have stopped lending to anyone with less than a 25% deposit, and a few have withdrawn all their mortgages from the market entirely.
If you've already submitted your application, lenders have said they'll offer an extension on the offer to give you time to complete. So if you have a mortgage offer, you should speak to your broker or lender to find out what their policy is.
If your income has changed, this might affect your ability to borrow as much as you'd like. Generally, mortgage providers will lend you up to five times your total annual income, to make sure you'll be able to afford your repayments.
1 in 3 Multipliers who are saving up to buy a home say their income and savings are taking a hit at the moment.
If you're not able to save as much as you planned to, you might need to keep saving for longer or adjust your expectations of what property you can buy, and when. You can use our property calculator to work this out.
Some people are using their savings to live on at the moment. Unless you have no other options, try not to touch money that's living in a Help to Buy ISA, Lifetime ISA, or invested in stocks and shares. Turn to any easy-access money in current or savings accounts first.
If you're struggling, there is help available. There are some tips here about how to get stable and keep saving if you can.
The property market looks very uncertain for this year. Nationwide, which publishes the biggest report of property prices, has said it will be hard to gauge market values because fewer sales are taking place.
Property firm Knight Frank also says that there will be significantly fewer transactions this year. It predicts a price drop of around 3% in 2020, meaning homes will be cheaper by the end of the year. That's assuming the economy shrinks by 4% - which is only a guesstimate at this point.
Knight Frank also predicts that property values will recover once the crisis has passed and the market starts up again. It expects price growth in 2021, but for now the future is still uncertain.
The Multiply team is here to support you and help you continue making progress towards your goals during this tricky time.
If you have any other questions or need help with your plan, you can give us a shout at support@multiply.ai.
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