Some 400,000 house sales are on hold owing to restrictions imposed in March because of the coronavirus. Under the government restrictions, purchases can go ahead only if the contracts have been signed and the people moving have no signs of illness and are not considered vulnerable to infection.
Aaron Strutt from Trinity Financial mortgage brokers told Kate Palmer “the low-deposit market has been hard hit and there is a very limited choice of rates. Some lenders have pulled out of the purchase market completely or drastically lowered the minimum deposit they require.”
He added that first-time buyer mortgages still being approved will be done online using desktop valuations instead of physical ones. “It’s easier to get a mortgage if the property you’re buying is relatively straightforward and if you have a big enough deposit.”