To Think This Will Crash the Housing Market?

[TheDoctorDances]

Coronavirus: UK mortgage market goes into partial lockdown www.bbc.co.uk/news/business-52106119

This is 2008 all over again, when very few people could get a mortgage. They’re offering payment breaks with one hand and leaving people stuck on a bad deal with the other.

I was trying to remortgage due to my deal ending and I’m now potentially stuck paying a higher rate for longer.

Depends how long it lasts. A couple of months, and things will bounce straight back. 18 months and not so much.

The fundamentals are very different. The drivers of the 2008 crash were underlying problems in the financial system that led to the crunch. This shock is not driven by lack of confidence or credit but restrictions imposed because of the pandemic. No one knows how the economy will react when restrictions are lifted.

If anything you should be in a good position as you'll be going onto SVR at a historically low interest rate, won't you?

Of course it will...

1. Not many will buy without having job security.
2. People can't physically look at houses.
3. An estate agent etc. Cannot visit your house to put it on the market, get a survey etc.
4. Less people will sell as they will not want any or uncertainty or instability and there will be a lack of available houses to look at.

Ride it out. Its good times and bad.

Yes - but I think recovery might be quicker than 2008

I think it's likely. The economic fallout from this could be devastating if it drags on for a few months.