Mortgage options may be limited in the coming weeks and months due to coronavirus. Reportedly, mortgage and loan providers have warned the Bank of England that the overall supply of these financial products is likely to dry up as the country moves into the autumn months.
This will be problematic for those looking to change their arrangements or get on the housing ladder but those who already own their homes may be able to breathe a sigh of relief.
According to the latest Halifax House Price Index, the average price of homes in the UK increased by 1.7 percent in July when compared to June.
Overall, prices are 3.8 percent higher than what they were this time last year.
For those who are fortunate enough to see their homes value increase from the time they bought it, they may be able to take advantage of further advances.
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Further advances can be taken for a number of reasons but are usually considered for funding home improvements or to raise a deposit for a second property.
Some may be tempted to utilise an advance to pay off existing debts but the Money Advice Service warn against doing this.
The new loan will be linked to the main home, which means the property could be lost if the repayments aren’t made.
It is advised that before further advances are considered, existing debts should be cleared first.
Struggling mortgage holders have received support from the government in the form of mortgage payment holidays.
If a person is struggling to cover their repayments due to coronavirus, they may be able to request a three month pause from the payments.
These holidays can be requested up until October 2020 under the current rules.
However, it should be noted that interest on the payments will still accrue when a holiday is taken, making the payments more expensive when the pause ends.