The past couple of weeks have been a whirlwind and it has been hard to keep up with the news. At the time of writing this blog the Bank of England have just slashed interest rates to record lows of 0.1% in a bid to support the economy during these uncertain times. The Bank of England will also increase its holdings of UK government bonds.
As the Coronavirus travels up the curve businesses like ours will need to take advantage of technology. Smart Money are now working remotely and are fully operational including all our lending partners. This will have no effect on our high service level we pride ourselves on and it is business as usual in the industry. We were meant to be attending the Specialist Lending Roadshow with Barcadia Media this week; however, these were cancelled due to the virus. The good news is we will be attending the virtual Specialist Lending roadshow on Wednesday 25th March which will mean we can carry on as normal and is a perfect time for you to brush up on your Specialist Lending knowledge.
In the news this week it has been identified that the gap between a first property and a family home is now three times wider than 10 years ago. The second stepper price gap has widened by 140% over the past decade between a flat and a terraced house since 2008 according to the Land Registry data, analysed by modular housebuilder Project Etopia. If the price difference continues at its current rate this could reach an excess of £100,000 between a flat and a terraced house. Manchester offers the smallest price difference between a flat and a terraced house which is currently less than £10,000. The strain on the market is due to new family homes not being built fast enough to increase stock levels for 3 to 4-bedroom properties. This is leaving second steppers unable to move up the ladder and forced to remain in smaller properties.
The property market could be in an ideal position now due to dramatic interest rate reductions by the Bank of England which could feed into the marketplace over the coming days and weeks. Mortgage brokers around the country are fully functioning so now could be the perfect time for your clients to snap up a bargain and negotiate further discounts on house prices. At Smart Money we could help your clients take advantage of these uncertain times by submitting your case online today or giving us a call on 01829 730 554. This also could be the perfect time for your clients to consider debt consolidation and to carry out those much-needed home improvements.
We recommend you keep checking our website and social media feeds to keep up to date on our announcements over the coming days and weeks