What happens if mortgage holidays are not extended? | Auction Agent Property Auction House
Mortgage Repayment Holidays
Over a million home owners have applied for a mortgage holiday during recent months due to the pandemic. The scheme started in March, with an initial application deadline of 3 months. The deadline has since been extended for another 3 months to the end of October. Successful applicants would enjoy three months of mortgage repayment holiday. If home owners are still struggling financially by the end of the three months, they may be able to apply for another 3 months of repayment holiday.
Mortgage support coming to an end
For those who received the support right from the start of March, their support will come to an end by the end of October. There have not been any announcements of any further extension for this scheme.
Furlough scheme is also ending
The furlough scheme, which has been guaranteeing that those placed on furlough maintain 80% of their normal salary or up to £2,500, whichever is lower, is due to end by the end of October as well. This scheme has been helping 9.6 million employees, who were furloughed by 1.2 million employers. Since August, the government has been slowly phasing out from the scheme.
New job support scheme to replace furlough scheme
Chancellor Rishi Sunak has announced that the furlough scheme will be replaced be a new, albeit a lot less generous, job support scheme in November, which will run for 6 months. The new scheme will ensure those who are working, at least 33% of their contracted hours, get at least 77% of their normal wage. Both the government and employer will contribute a third each towards the hours not worked.
How will the new job support scheme affect me?
It is clear that the new scheme is not as generous for employers when you compare it with the existing furlough scheme. Chief executive Marc Crothall of Scottish Tourism Alliance (STA) said: “Employers cannot afford to pay staff when there is no work, so we can still expect to see mass redundancies.” He said: “The Jobs Support Scheme will only help businesses which have sufficient demand to pay these minimum hours; the majority of tourism businesses simply will not be able to do so as their businesses are either closed due to legislation or restrictions. “This continues to create pressure on the payroll at a time when consumer confidence and demand for the services which the tourism sector offers is at an all-time low, coupled with the increased restrictions in place.”
Questions to ask yourselves as property owners
After taking into account of predictions made by industry experts and changes in the government support scheme, many are fearing the worst. Will there be mass property repossessions like the 2008 financial crisis due to the inability of homeowners to repay their mortgages? Will this cause property prices to plummet? Is it better to sell my property now before everything turns south?
What should I do if I am thinking of selling my property?
If you are having doubts, and would like to sell your property before prices potentially takes a U-turn, you should sell with Auction Agent property auction house today before it is too late. With our exchanges guaranteed to complete anywhere from 1 to 28 days from the fall of the hammer, Auction Agent property auctioneers will ensure that your property would be sold as quickly as possible and without the worry of buyers dropping out. Our seller’s package includes marketing on leading online property portals (Rightmove, Zoopla, and PrimeLocation) and social media platforms (Facebook, Twitter, and LinkedIn).
Auction Agent property auction house has over 50 years of combined experience – we are ready to answer any of your questions regarding buying, selling, or just regarding property auctions in general. Auction Agent house auctioneers offer complete services for buyers, sellers and even probate property owners. Furthermore, Auction Agent property auction house gives all sellers a peace of mind with our no-sale-no-fee approach.
Take your first step to a stress-free property sale today by contacting us for a free property valuation. Be sure to sign up for our newsletter for the most up-to-date properties available from our property auction portfolio.
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