June 18th, 2020
Many industries are still recovering from the impact that the coronavirus has had on the economy, not least the housing market and the various businesses reliant on the housing sector. In the UK, most of the restrictions on moving to a new home have been lifted so interested buyers can resume with the formalities of viewing properties and applying for mortgages. With all of that being said, you may be wondering if now is the best time is to invest in a property. We’ve put together practical advice to explain why there are many positive reasons to move ahead with mortgage application at this time.
House prices are likely to fall
According to the Financial Times, UK surveyors are predicting that house prices will continue to fall over the coming months, partly due to the fluctuating economy and a fall in demand. This is good news for potential buyers as you will be able to get better value for money. You might be able to get a better location, a bigger outdoor space or extra rooms within your new home. The lockdown period has changed the priorities for many buyers, putting a focus on properties that have outdoor spaces as people realise that they will be spending more time at home. If you are looking to sell it may be a good time to spruce up your garden.
Mortgage prices have dropped because of the Bank of England base rate cut
During the early stages of the pandemic, the Bank of England dropped to a historic low of 0.1%. Some variable-rate mortgages use the base rate to calculate the charge of interest on mortgages (depending on your mortgage type), which meant that the saving was passed on immediately to existing borrowers. While that cut has not been passed on in full to new borrowers it has helped mortgage lenders to keep their products competitive. Long-term fixed options have become a key battleground amongst lenders, with many offering rates that provide considerable savings.
| Date of base rate change | New base rate |
| 19 Mar 20 | 0.10 |
| 11 Mar 20 | 0.25 |
| 02 Aug 18 | 0.75 |
| 02 Nov 17 | 0.50 |
| 04 Aug 16 | 0.25 |
| 05 Mar 09 | 0.50 |
| 05 Feb 09 | 1.00 |
| 08 Jan 09 | 1.50 |
| 04 Dec 08 | 2.00 |
| 06 Nov 08 | 3.00 |
| 08 Oct 08 | 4.50 |
| 10 Apr 08 | 5.00 |
| 06 Dec 07 | 5.50 |
| 05 Jul 07 | 5.75 |
| 10 May 07 | 5.50 |
| 11 Jan 07 | 5.25 |
| 09 Nov 06 | 5.00 |
| 03 Aug 06 | 4.75 |
| 04 Aug 05 | 4.50 |
| 05 Aug 04 | 4.75 |
| 10 Jun 04 | 4.50 |
| 06 May 04 | 4.25 |
| 05 Feb 04 | 4.00 |
| 06 Nov 03 | 3.75 |
| 10 Jul 03 | 3.50 |
| 06 Feb 03 | 3.75 |
| 08 Nov 01 | 4.00 |
| 04 Oct 01 | 4.50 |
| 18 Sep 01 | 4.75 |
| 02 Aug 01 | 5.00 |
| 10 May 01 | 5.25 |
| 05 Apr 01 | 5.50 |
| 08 Feb 01 | 5.75 |
| 10 Feb 00 | 6.00 |
| 13 Jan 00 | 5.75 |
| 04 Nov 99 | 5.50 |
| 10 Jun 99 | 5.00 |
| 08 Apr 99 | 5.25 |
| 04 Feb 99 | 5.50 |
| 07 Jan 99 | 6.00 |
| 10 Dec 98 | 6.25 |
| 08 Oct 98 | 7.25 |
| 04 Jun 98 | 7.50 |
*Data Bank of England
Get advice and support from a mortgage broker
CMME is proud to be a mortgage broker that specialises in helping the self-employed, contractors and freelancers. We can support you in your quest to find the best mortgage rates and deals. We have a team of dedicated, hardworking people who are ready to help you purchase your dream home. We can take a look at the market of lenders and advise you on the best options for your budget and personal situation. We aim to provide a truly unique experience and can create bespoke solutions for you and your loved ones.
You can also use a mortgage calculator to look at how much you can borrow
Securing your financial future
Purchasing a property is one of the best ways to invest your money and secure your financial future. The coronavirus pandemic has made a lot of people re-evaluate their financial situation. While property values fluctuate, you can be assured that you will have financial security and a safe place for your family to stay if you own your own home. Having this financial stability is vital in this period of uncertainty – particularly if you’re self-employed, a contractor or freelancer. CMME can give advice and support to self-employed people and offer bespoke advice on your individual situation. If you would like to know more, contact us today.