The ongoing debate surrounding this year’s A Level results during the coronavirus pandemic, and the impact of the pandemic itself, is creating some interesting trends in the private rental sector. As students across the country firm-up their plans for the academic year ahead, it is interesting to explore how the pandemic is affecting the market and to consider whether there will be longer-term changes to this important part of the rental sector.
In any fast-moving situation, there is always likely to be a degree of speculation and misinformation. So, given that few events that have escalated as quickly as COVID-19, it’s unsurprising that there has been so much conjecture as to the impact it will have on different areas of our lives.
As we continue to navigate through the current pandemic many aspects of life are changing as the ‘new normal’ is embraced. But what is the new normal? Working from home is one example and has created a whole set of opportunities for the mortgage industry.
From home-buyers to landlords, in the current market it may be more difficult for your clients to access high worth mortgages, especially if they need a high LTV.
Whether they’re applying for a residential or buy to let mortgage, if they can’t easily prove their ability to repay significant amounts of money each month, they may not be able to get the loan amount they need. Some lenders could be particularly cautious about lending large sums at a higher LTV, even on an investment as reliable as a property.
Did you know that despite the challenges faced by landlords in recent months, 87% of them still generated a profit in Q2 – the highest level of profitability since the end of 2018*?
Your clients may be considering the way they run their rental portfolio and exploring the option of managing it through a limited company for tax efficiency.
Life is beginning to grind back into gear, but it’s a different gear to the one in which we entered the start of the COVID-19 pandemic. Wearing face coverings on public transport and in shops, for example, will be part of life for quite some time and working from home will be a new reality for many.
We took the opportunity to chat to Emma Green, Head of sales at Paymentshield about their latest developments to support mortgage advisers during these uncertain times.
It’s been 3 months since the start of lockdown what are the things that have impacted on Paymentshield and the home insurance market? Well, three impacts from lockdown for me would be…
In this issue, we look at how the wider mortgage market has fared through the COVID-19 crisis. We examine how new lending has been impacted and what the recovery might look like, as well as what the changes in the industry, both temporary and permanent, mean for lenders and customers and the future of the sector.
The results from our annual Broker Barometer are here and we are encouraged by the overall positive outlook of the broker community, despite the challenges faced as a result of the pandemic.