how the pandemic has changed things for you
the impact of coronavirus on your personal finances
Covid-19 changed almost every aspect of our lives this year. As we adjust to a new normal, the impact of coronavirus continues affect us. Here’s a breakdown of the key changes:
Home movers
No Stamp Duty - The government has announced a Stamp Duty Holiday, which means that no stamp duty will be payable on any purchases below £250,000 in Wales and £500,000 in England before April 2021. However, this does not include second homes or buy to let properties.
“Virtual viewings” - With physical viewings contravening the new social distancing rules, you may have to view your prospective home virtually. Buying a house is one of the biggest financial purchases you will ever make. If a virtual viewing is all that is available, be sure to ask even more questions, as not everything can be seen through a camera lens!
Help to Buy Scheme and Help to Buy ISA’s - The schemes are still available in its current format will end in April 2021. However, the government is considering extending this deadline due to coronavirus-related delays that buyers have had to endure. If this extension is to occur, buyers will likely be able to extend their purchases into 2021.
Landlords
Rent arrears- Are your tenants struggling to keep up with their payments? In March this year, the chancellor announced that lenders will be able to offer a 3 month mortgage holiday which they have encouraged to also be passed on to help tenants. You can still ask for this up until the 31st of October 2020. However, it is still uncertain on how lenders will view these payment holidays when considering future applications.
Viewings for new tenants - The new social distancing guidelines have changed which means you cannot arrange physical viewings of your home whilst your tenant is still occupying the property. The property must now be vacant for 72 hours before a physical viewing can take place.
Evictions - The government placed a ban on evictions until 20th of September 2020. They have also now changed the notice period for evictions to be given from 3 months to 6 months.
Protection
Is it too late? The key thing to note is that you shouldn’t have any issues buying life insurance. Some insurers have tightened up or changed their underwriting requirements to ask questions about coronavirus, but there is currently no restriction on the availability of life insurance.
Income protection - We are seeing more and more sickness leave due to the government enforced self-isolation rules. With reports that people suffering with COVID are still feeling the aftereffects months after beating the illness, its important to know you don’t have to worry about money if that happened. Please don’t think that its too late to protect your income, please speak to us and we can discuss this further to put your mind at rest at this uncertain time.
If you’d like a chat or need any advice about the above, please give us a call, we’re happy to help 01633 987070.
