The housing market and people downsizing

[joan04]

I was speaking with my friend who's DP has lost his job and even if he gets a new job is looking at a salary drop of 20-30k. This combined with the mortgage holiday ending in October means they have taken steps to downsize to a smaller property and are currently speaking to an estate agent to put their house on the market sooner rather than later as they feel things will be a lot worse in 6 months time so hope to get more by selling it now. She is obviously absolutely gutted.

My job is also fairly insecure and I don't particularly have much in the way of savings so would likely have to sell my flat and move back to my parents if things really do take a turn for the worse.

Just wondered if others were worrying or in the same boat.

It's hard to say what will happen 6 months to a year from now. I don't work in the housing market but I think there will be a lot of people facing financial hardship with the loss of income that may have to look at reducing their outgoings.

Personally, I don't know anyone who is considering downsizing because of the coronavirus (or I haven't been told at least), although most of our friends rent.

How will they get a mortgage if he has no.job?

[quote Discobar]How will they get a mortgage if he has no.job?[/quote]
Perhaps he won't need one if they are downsizing considerably.

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[quote Discobar]How will they get a mortgage if he has no.job?[/quote]
I assume they are planning and hoping in terms of him getting a new job.

His last job was in the public sector in finance, he hasn't got any accountancy qualifications or much private sector experience though and recruitment agencies are saying he is looking at a pay drop of 20-30k as he'll be looking at accounts assistant type roles rather than the bespoke role he had at the council.

@joan04 is it possible for him to train or get certified in the meantime?

Whatever he earns will be considerably better than JSA.

The lower end of the housing market in my area is booming. Houses are flying off the shelves. I’m in the market to sell at the mo & I’ve def seen a fair few houses pop up that were only bought a year or so ago (if you look at the historical values).. sadly, I kinda assume that’s people who have hit difficulties due to the pandemic

Yes I have the same fear, if I'm made redundant and can't get another job I'll have to sell my flat and move back in with my parents, if I have to take a pay cut I may cope (with the rent I get from my lodger) but the thought is scary. Sadly the sector I work in (Higher education) is stuffed at the moment.

Could this be the start of the fabled crash 😳

I’ve nearly paid my mortgage of, so no point to sell as it would cost about £30k in fees and taxes

We don't have a big house or mortgage to begin with, when we took out our mortgage we calculated with added years we could cope if interest rates went up to 15%, just in case, unlikely but it gave us financial wriggle room. Couldn't your friend OP and husband once he gets a new job of course, see if they can renegotiate their current mortgage and extend the term to reduce payments for the time being? If it is your dream home, you might downsize, pay stamp duty, solicitor, moving costs and in two years are back in a position to afford the house you had.