The monstrous virus that has taken over the life of this planet is getting worst day by day. The result is spoiled economies, derailed careers and above all, threatened financial and future goals. There is no second thought that buying a home is one of the most precious decisions of your life. You make great scale preparations for that, but even a small change in finances can hurt all your plans. This time, unfortunately, that change is not tiny in fact, huge due to its capacity to destroy.
Many home buyers across the UK are in a sudden stuck due to coronavirus. They were on the different stages of their home buying before the chaos started. Some were planning for site viewing, and some were in the middle of the application procedure, some were happy on a successful arrangement of deposit money. Are you also buying your home during this time?
Unfortunately, COVID -19 is here to distribute disturbance everywhere. To keep home buying less affected by it, you need to take care of a few tips.
As procedures are taking a much longer time than ever, it is better to start as soon as possible. You do not need to go anywhere because you cannot do that now because of the homestay. Besides, it is not safe. Faster you start, smoother you will get through the process.
For the existing applications, the mortgage market of the UK has announced that there is no harm to the rights of the current applicants. If you have applied already, then it’s excellent, wait and watch. If you haven’t applied yet for the mortgage, then at least send your application. At least, it will get into the notice, and the mortgage companies will start working on it, and you can attain a pre-approval.
Complete the elementary tasks online
All the initial stages can be tackled online. Until things get routine, you have to manage like that only. However, it is not that difficult, and you can do that.
- Get on the local agent’s website for property details – It is always equipped with all the necessary information about the property and its proximity. The artificial intelligence gives you the liberty to choose your preferred location on the map and find out the nearest choices.
- Once you select the properties, you can call the agent to tell you more about your choice. Ask the agent to facilitate a virtual tour of the actual site as that can help make up your mind.
- Keep all the required documents on your e-mail i.d. ‘ready to send’. While making a mortgage application, you need to send your documents to the lender or broker many times.
An advisable way is, hire any mortgage broker in the UK and ask to keep an eye on the possibilities of making mortgage application. Also, it can keep you updated about which lender has the most flexible approach during this tough time.
Use the time to work on your deposit size
When no one is going out, and you are free from the chaos of daily commute, there is a lot of money and time to save. A considerable size of the down payment can bring a positive turn in your struggle. By the time the lockdown period gets over; you can try to arrange a hefty amount for advance. It reduces the loan amount and in turn, the burden on the monthly budget.
There can be several ways to fulfil this purpose –
- Sell your old assets online – The online shopping services are still working with reduced frequency. Many sites sell second-hand products. Post your things there and whatever you earn can go to savings as not many expenses are there due to homestay.
- Take a look at all the available money in your savings, mutual funds etc. and figure out the amount you can use for the deposit. Most of the borrowers use these methods to cope with the issues on the part of down payment.
Invest in stocks to arrange a big part payment later
This time is perfect to buy stocks as due to the cold economy, and the stock market is moving slow. Once the lockdown gets over, your purchased shares may go high, and you can sell them on a very high price.
The earned profit on stocks can be used to make a big part payment in the future. It can drastically shrink the substantiality of your mortgage, and you can enjoy small monthly instalments. Many people across the world eagerly wait for a slowdown in the economy to purchase shares. If you are also among them, this is your moment.
Stay updated to take the right decision at the right time
As the market conditions are unpredictable, you must stay in touch with the latest circumstances. It can protect you from a regretful decision as well as can bring the opportunity of a profitable deal.
- According to the prevalent news, property prices may fall up to 5%. This information can be so useful to make necessary alternations in your decisions. You may find it profitable as the home buying is quite affordable in the current time.
- The LTV percentage has reduced to a considerably low level. It has degraded to 60%. It is the minimum level that the lenders are providing. Even the big names like Barclays and Halifax are following the culture. If you know this, you can at least work on accumulating more funds for the lender.
More updated you remain about the latest buzz, better resolutions you can make. Information is always the best tool and weapon to achieve the best in your life.
All the above tips precisely and practically relate to the current situation. You can follow and apply either some or all according to their suitability to your personal conditions. The unavoidable thing is to stay cautious and take no-decision in haste.
There is already a long bumpy road to cross for the whole economy once life comes back to normalcy. You need to take care of your finances and should not let any wrong turn take control of your financial life. Stay alert, and you can be on the safer side in home buying.