Coronavirus UK: Mortgage companies could reach deals even after buyers swap

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Homebuyers could see their mortgage terminated even after swapping contracts for a new home, as banks calculate whether loans are still affordable for those whose circumstances changed during foreclosure.

The number of property sales that stagnated when the government closed the UK housing market on March 26 is estimated to be 450,000, most of whom should have had mortgages officially offered or accepted in principle.

But banks are now considering revaluing many loans – some even after contracts have been swapped – with millions of workers who have since seen their wages cut, on leave, lost a bonus, or laid off.

Customers with a mortgage offer are now invited to contact their bank if their situation has changed, while one in seven borrowers currently on mortgage can also expect their situation to be reassessed.

Meanwhile, 80% of investigators said they saw buyers and sellers withdraw from transactions due to the coronavirus pandemic, according to the Royal Institution of Charted Surveyors.

The prices of dozens of properties across Britain – especially London – have been slashed in recent days, with sellers doing their best to move their homes in times of economic crisis, with more examples seen this morning.

This five bedroom detached house in Oxted, Surrey has been reduced from £ 885,000 on December 6, 2019 to £ 825,000 today

Extensible property

This five bedroom detached house in Oxted, Surrey has been reduced from £ 885,000 on December 6, 2019 to £ 825,000 today

This huge 14-bedroom house in Worthing, West Sussex has grown from £ 1 million on March 19 to £ 900,000 today

Worthing property

This huge 14-bedroom house in Worthing, West Sussex has grown from £ 1 million on March 19 to £ 900,000 today

A four bedroom detached house in Alresford, Essex has been reduced from £ 860,000 on November 23, 2019 to £ 800,000 today

Essex property

A four-bedroom detached house in Alresford, Essex, was reduced from £ 860,000 on November 23, 2019 to £ 800,000 today

A five bedroom detached house in Penzance, Cornwall has been reduced from £ 625,000 in October 2018 to £ 595,000 today

Penzance property

A five bedroom detached house in Penzance, Cornwall has been reduced from £ 625,000 in October 2018 to £ 595,000 today

Two-bedroom terraced house in Dorking, Surrey has been reduced from £ 325,000 on February 5 to £ 300,000 today

Dorking property

A two-bedroom terraced house in Dorking, Surrey, was reduced from £ 325,000 on February 5 to £ 300,000 today

Today, a two-bedroom apartment in Kensington in West London has grown from £ 1,600,000 to £ 1,500,000, while a five-bedroom Grade II listed house in Penzance, Cornwall has grown from 625,000 £ to £ 595,000.

Elsewhere, a four-bedroom townhouse in North Hykeham, Lincolnshire, was reduced from £ 215,000 in August 2019 to £ 200,000, and a bungalow in Winslow, Buckinghamshire, went from £ 320,000 to £ 298,950.

There have been 3,193 properties added to RightMove in the past 24 hours to around 9:00 am today – an increase of more than 1,000 from the 2,153 properties added in the 24 hours to the same point yesterday.

And Beauchamp Estates said that the rebound in the London housing market would unlock three major deals, each worth more than £ 10 million, to Belgravia and Knightsbridge, which had been blocked due to the foreclosure.

Sarah Coles of Hargreaves Lansdown told The Times: “Mortgage lenders are free to withdraw their mortgage offer even after they have exchanged contracts.

This two-bedroom apartment in Kensington in West London has been reduced from £ 1,600,000 on March 16 to £ 1,500,000 today

Kensington property

This two-bedroom apartment in Kensington in West London was reduced from £ 1,600,000 on March 16 to £ 1,500,000 today

A four-bedroom townhouse in North Hykeham, Lincolnshire has been reduced from £ 215,000 in August 2019 to £ 200,000 today

Lincolnshire property

A four-bedroom townhouse in North Hykeham, Lincolnshire has been reduced from £ 215,000 in August 2019 to £ 200,000 today

Two-bedroom bungalow in Winslow, Buckinghamshire has been reduced from £ 320,000 on February 7 to £ 298,950 today

Buckinghamshire property

A two-bedroom bungalow in Winslow, Buckinghamshire, has been reduced from £ 320,000 on February 7 to £ 298,950 today

One bedroom apartment in Potters Bar, Hertfordshire, was reduced from £ 170,000 on May 7 to £ 160,000 today

Hertfordshire property

One bedroom apartment in Potters Bar, Hertfordshire, was reduced from £ 170,000 on May 7 to £ 160,000 today

“They can do this if they believe the property has dropped significantly or your situation has changed and they no longer see you as an attractive mortgage client.”

Couple on leave in twenties still hoping to move

Laura Wilson, 25, and boyfriend Elliot Horn, 28, of Leeds

Laura Wilson, 25, and boyfriend Elliot Horn, 28, of Leeds

Elliot Horn, 28, and girlfriend Laura Wilson, 25, were scheduled to move into a new house in Leeds in September until the lockdown stopped.

Horn said that although the reopening of the housing market is “great news,” the deal has been called into question because he and Miss Wilson have been on the lookout for marketing jobs.

He added: “It’s a cloud hanging over us … but we still hope we can move on. “

Unable to visit the site, the couple deposited their deposit on the strength of the virtual images of the new property.

“We know that some people have had their mortgages withdrawn while the market was frozen. Others had expired offers of mortgages pending the reopening of the market. You may need to reapply, and assessments may take longer as investigators impose social distancing.

Also today, a report from the Royal Institution of Charted Surveyors (Rics) suggested that house prices may take longer to recover than sales now that the UK property market has been reopened for business.

He said comments suggest that a price recovery could take a little longer than a rebound in sales levels, with real estate professionals suggesting that on average, prices would take 11 months to recover, against nine months for sales.

The results were contained in the UK-wide April Rics survey, which indicated that 35% of real estate professionals thought prices could be left up to 4% lower when the reopening of the housing market, while more than 40% thought that prices could drop by more than 4%.

An overall net balance of 92% of investigators saw the number of agreed sales decrease rather than increase in April.

A net balance of 96% reported a decrease rather than an increase in the number of new properties on the market – the lowest reading since this question began to be asked in April 1999.

A net balance of 21 percent of investigators saw house prices fall rather than increase in April. In April, the investigation sought the government’s opinion on the potential support measure to suspend stamp duty until resumption of sales.

RICS data shows new demand from buyers in Britain fell last month to levels not seen since the 2008 recession

RICS data shows new demand from buyers in Britain fell last month to levels not seen since the 2008 recession

Price expectations have collapsed in Britain, Rics' April UK survey revealed that 35% of real estate professionals thought prices could be left as low as 4% lower when the housing market reopens.

Price expectations have collapsed in Britain, Rics’ April UK survey revealed that 35% of real estate professionals thought prices could be left as low as 4% lower when the housing market reopens.

In the rental market, rents are expected to fall across the UK over the next three months, but will stabilize in 12 months, according to Rics. In five years, rents should increase by around 2.5% per year

In the rental market, rents are expected to fall across the UK over the next three months, but will stabilize in 12 months, according to Rics. In five years, rents should increase by around 2.5% per year

Just over six in 10 (62%) believed that a stamp duty suspension would help the market recover from the pandemic, increasing sales and leaving prices relatively unchanged.

“I had to reduce the price of Daddy’s house by 10%”

Carol Burgess, 66, with her father Peter Lemon, 90

Carol Burgess, 66, with her father Peter Lemon, 90

Carol Burgess was forced to accept a 10% reduction on the sale of her father’s house.

She announced the property in Barton on Sea, Hampshire, for £ 365,000 to finance her £ 1,000 per week for nursing home costs. But last month, real estate agents told him to accept £ 330,000.

Burgess, 66, said she was concerned about how she could continue to pay for Peter Lemon, 90.

She said she would sue her real estate agents “as soon as possible” after the government reopens the market. She added, “The buyers said [£330,000] was their best offer because house prices could drop.

In the rental market, rents are expected to fall across the UK over the next three months, but will stabilize in 12 months.

In five years, rents are expected to rise by around 2.5% per year, while house prices are expected to rise by around 2% per year.

Yesterday the government paved the way for real estate professionals in England to get back to work, with real estate agents now able to reopen and show people the properties, subject to the distancing guidelines social.

Despite the relaxation of restrictions in England, the way people can trade has changed.

Visits to “virtual” properties are always encouraged, as well as the use of a hand sanitizer and regular hand washing for house hunters who are so interested in a property that they want to see it physically. . Some real estate agents have said they allow branch visits by appointment only.

Simon Ricsinsohn, chief economist of Rics, said: “Not surprisingly, the latest survey shows that housing activity indicators collapsed in April, reflecting the impact of the foreclosure.

“Looking further, there is a little more optimism, but the numbers still suggest that it will be difficult to regain confidence where it was in February.

There has been a huge increase in Google searches for RightMove and Zoopla owned websites in the past two days

There has been a huge increase in Google searches for RightMove and Zoopla owned websites in the past two days

Google's trends over the past week show a gradual increase in interest Tuesday until 10 p.m. - before a spike yesterday

Google’s trends over the past week show a gradual increase in interest Tuesday until 10 p.m. – before a spike yesterday

“In addition, achieving this goal will largely depend on how the pandemic unfolds and what it means for the macroeconomic environment. “

Manufacturers Persimmon and MJ Gleeson to reopen after restrictions are relaxed

Builders Persimmon and MJ Gleeson will step up operations after the government relaxed restrictions on relocations earlier this week.

Mr. J. Gleeson said he would restart slowly and have reopened half of his work by the end of the week. It will also open 19 sales offices this week.

The manufacturers of Persimmon had already started to assemble tools on April 27, but Friday its sales offices will open their doors to potential customers.

The builder had initially closed all of its construction sites in late March.

The company said it did not count on government support to lay off workers during the period, and is therefore able to return them to work quickly.

During the weeks of site closures, Persimmon staff tested a range of new methods for working safely during a pandemic.

“Now, as we resume operations, this decision also allows us to get back to work quickly and safely,” said CEO David Jenkinson.

Scottish Persimmon business remains closed.

Earlier this week, the government said it would allow people to visit real estate agents if they need to move.

The economy has been frozen for weeks to prevent the spread of the coronavirus.

The foreclosure would have put about £ 82 billion of pending transactions in the housing market.

The news follows similar initiatives from other home builders Taylor Wimpey and Crest Nicholson, who said on Wednesday that they would step up their work.

Jenkinson said: “We support the government’s view that the housing sector has a key role to play in the UK economic recovery.

“The urgent need for new housing has not been alleviated by Covid-19 and the new measures announced by the government will reopen the housing market and allow people to move again. “

Hew Edgar, head of relations with the British government, said: “Last month Rics called on the British government to explore confidence building measures for the residential market when it reopens, and the data suggests that our holiday proposal stamp would be a success. a change that would boost transactional activity, helping people get home.

“There are, of course, other options available to the government when the market reopens, despite stamp duty options such as reducing or removing stamp duty for size reductions that would revive the fluidity of the market, and we look forward to continuing the conversations as the market begins to move. again.’

It also emerged yesterday that buyers are looking for discounts of up to 20% on properties as the housing market wakes up, experts warning of a “Mexican dead end” as fears persist if prices fall price.

RightMove said online consultations had increased 45% yesterday morning, while mortgage searches had increased 18% last week, according to comparison site MoneySuperMarket.

The Andrews real estate group, which has 48 offices in the south of England, said it received 226 calls from potential buyers within an hour of opening its lines.

But experts have warned that prices should fall further as economic uncertainty causes transactions to collapse and buyers are looking for big discounts.

Estate agents Knight Frank said they expect UK house prices to drop 7% by the end of the year and added that prices should already have dropped ‘about 5%.

Real estate adviser Henry Pryor said he had four clients who had suspended foreclosure transactions, all of whom were now looking for 20% off the agreed price, but would likely settle for 5-10%.

He added: “There is going to be a Mexican confrontation and it will be interesting to see who blinks first. Real estate agents will try to convince us that this is as usual, but buyers will have read the economic reports and say they are taking a risk. All the agreements that were there will have to be renegotiated. Many will collapse.

Jenrick told MPs yesterday that the reopening of estate agents was “the most radical restart in an industry” since the foreclosure. He added: “In every economic recovery in modern British history, the housing market has been the key. “

The new look market will see buyers taking hand sanitizers during visits, while agents have been instructed to use online visits. The owners will be invited to leave the house or to stand in the garden during the visits.

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