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Mortgage payment holiday extended amid ‘worst house price slump for 11 years’

by ace
Mortgage payment holiday extended amid 'worst house price slump for 11 years'

The city’s regulator has extended the deadline for requesting a mortgage payment vacation for customers struggling to meet payments, while a well-observed report records a “sharp” decline in home prices amid the coronavirus crisis.

The Nationwide study recorded the biggest monthly drop in house prices in 11 years in May, warning of a prolonged drop in mortgage activity and the housing market, despite restrictions on viewing and agents' work easing last month. in England.

Its measure of house prices fell 1.7% in May compared to April, the biggest drop since February 2009, clearing just over 4,000 pounds from the average value.

In annual terms, prices rose 1.8%, decelerating from 3.7%.

Across the country, the impact of the COVID-19 pandemic on home buyers' minds is likely to weigh on the market.

Research carried out suggested that people had postponed the change as a result of the blockade and prospective buyers planned to wait an average of six months.

Mortgage payment holiday extended amid 'worst house price slump for 11 years'

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Mortgage customers who received payment assistance will not have a negative impact on their credit file, FCA promised

The mortgage lender's report was released when the Financial Conduct Authority (FCA) announced that the deadline for vacation requests for mortgage payments had been extended by three months – until October 31.

The prohibition on repossession of creditors has also been confirmed for the same date.

The regulator said the measure will ensure that people can comply with the government's policy of isolating itself, if necessary.

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The FCA said: "Creditors will continue to support customers who have already had a payment holiday where they need more help.

"Companies should contact their customers to find out what they can afford and, for those who remain in temporary financial difficulties, offer additional support, which will include the option of an additional three months of full or partial payment."

Economists widely believe that the impact on earnings during the UK blockade will also hit home prices as the year continues.

Samuel Tombs, economist at Pantheon Macroeconomics, said: "The huge size of the COVID-19 coup for household income and the deterioration of consumer confidence suggest that house prices are likely to fall.

"We expect a 5% decline in prices by the end of the third quarter."

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