Connect with us

LIFESTYLE

Difficulties of Getting on the Property Ladder Post-Pandemic

Difficulties of Getting on the Property Ladder Post-Pandemic 29

There is a lot of talk about what’s going to happen to the housing market over the next few months. Some experts predict there will be a huge housing market crash, while others tend to think that there won’t be any big changes as such, and things will remain pretty stable.

What has become apparent over the last few weeks, however, is that first-time buyers are struggling more than ever to secure a mortgage and get on the property ladder, and those that have been saving for a 10% house deposit would’ve seen the deals available to them take a huge drop.

Megan Evans, a first-time buyer based in Exeter, has recently had her lender go back on their mortgage in principle now that the situations amongst lenders have changed. She says:

“I had my mortgage in principle prior to lockdown where we had our 10% deposit and our lender was happy to cover the rest. We viewed a property once the market opened and put down an offer. However, our lender, under the current circumstances, went back on the mortgage in principle saying that they now require 15% LTV.”

“We’ve had to cancel on our broker and go directly with Nationwide, who’ve started accepting 10% deposits although even that was a struggle, as they’re only accepting a few applications a day.”

There is no doubt that it has become increasingly hard for first-time buyers to get on the property ladder, especially if they didn’t have a bigger deposit beforehand.

It’s important for first time buyers to be aware of the other costs involved in buying a house too, and to remember to keep a few grand back for the likes of solicitors fees, broker fees, insurance and other costs.

You can read more about the extra costs for first-time buyers here.

Not only is it difficult for those that had smaller deposits beforehand, but it’s also going to be harder to get the deposits saved up in the first place, with Help to Buy ISAs now being dropped by the government and savings accounts dropping their interest rates.

On top of this, Chris Evans, Head of Specialist Mortgages at Pure Commercial Finance, thinks that low deposits won’t be the only thing stopping first-time buyers from getting a mortgage over the next few months.

“There will be a few stumbling blocks stopping first-time buyers being able to get a mortgage. While the 10% LTVs will be the biggest one, lenders will take more precaution at giving a mortgage to those that may not be seen to have job stability. For example, employees that’ve been furloughed over the pandemic will find it more difficult to prove the stability of their job, and overtime and bonuses may not be used in full when a lender looks at previous pay slips to assess affordability.”

Hopefully, as things start to settle down more, the housing market won’t be too difficult to get on for first time buyers, and lenders start introducing their lower LTVs again.

Until then, if you’re trying to take your first step onto the property ladder, make sure to shop around for the best mortgage deals. As Megan found out, it’s worth looking for the right lender.

Continue Reading

Recent Posts

The lockdown money revolution 30 The lockdown money revolution 31
FINANCE2 days ago

The lockdown money revolution

By Granville Turner, Director at Turner Little. Many Brits have found that lockdown has been beneficial for their money, having...

Self-employed taxpayers and Making Tax Digital 32 Self-employed taxpayers and Making Tax Digital 33
BUSINESS2 days ago

Self-employed taxpayers and Making Tax Digital

By John Hemming, CEO of Cirrostratus Exedra, the company that runs the VAT Direct Making Tax Digital Service The HMRC’s ambition...

Auditor regulation and litigation - down to the Wire(card)? 34 Auditor regulation and litigation - down to the Wire(card)? 35
BANKING2 days ago

Auditor regulation and litigation – down to the Wire(card)?

By Tom Snelling, partner at Signature Litigation and David Entwistle, a regulatory lawyer and legal risk specialist Introduction The collapse...

Why it’s time to adapt to the virtual world: how to master online negotiations 36 Why it’s time to adapt to the virtual world: how to master online negotiations 37
TECHNOLOGY2 days ago

Why it’s time to adapt to the virtual world: how to master online negotiations

By Tony Hughes, CEO at Huthwaite International, a leading global provider of sales, negotiation and communication skills development Virtual negotiations...

Protecting against man in the middle attacks with dynamic linking 38 Protecting against man in the middle attacks with dynamic linking 39
FINANCE1 week ago

Protecting against man in the middle attacks with dynamic linking

By David Vergara, Senior Director of Product Marketing at OneSpan In recent years, the booming growth of mobile applications has...

The Case for Banks to Digitally Transform: Iterating out of lockdown 40 The Case for Banks to Digitally Transform: Iterating out of lockdown 41
BANKING1 week ago

The Case for Banks to Digitally Transform: Iterating out of lockdown

By Sudeepto Mukherjee, Senior VP, Banking EMEA & APAC, Publicis Sapient. Before COVID-19 disrupted every imaginable part of society, banks...

Difficulties of Getting on the Property Ladder Post-Pandemic 42 Difficulties of Getting on the Property Ladder Post-Pandemic 43
LIFESTYLE1 week ago

Difficulties of Getting on the Property Ladder Post-Pandemic

There is a lot of talk about what’s going to happen to the housing market over the next few months....

Russian Doll: Building digital capabilities into a bank’s core 44 Russian Doll: Building digital capabilities into a bank’s core 45
BANKING1 week ago

Russian Doll: Building digital capabilities into a bank’s core

By Ian Johnson, Managing Director of Europe, Marqeta COVID-19 has left its mark on every industry, and banking is no...

How the US and Europe's COVID-19 Responses Have Affected Exchange Rates 46 How the US and Europe's COVID-19 Responses Have Affected Exchange Rates 47
TRADING1 week ago

How the US and Europe’s COVID-19 Responses Have Affected Exchange Rates

In living memory, few events have thrown the reputations of different countries and regions under such intense scrutiny as the...

Recognising the surprise PE investment potential in southern Africa 48 Recognising the surprise PE investment potential in southern Africa 49
INVESTING2 weeks ago

Recognising the surprise PE investment potential in southern Africa

By Martin Soderberg, partner at SPEAR Capital. An event of historic significance passed largely unnoticed in the world’s media recently,...

Why Banking is experiencing a second wave of transformation 50 Why Banking is experiencing a second wave of transformation 51
BANKING2 weeks ago

Why Banking is experiencing a second wave of transformation

By Keith Pearson, Head of Financial Services EMEA, ServiceNow The financial landscape has seen significant changes in the last six...

Making your mark: an introduction to trademarks 52 Making your mark: an introduction to trademarks 53
TRADING2 weeks ago

Making your mark: an introduction to trademarks

By James Turner, Director at  Turner Little  Are you looking to protect your brand? The chances are, you are –...