I was concerned to read that furloughed workers are increasingly struggling to get a mortgage.
While taking on a new commitment like a mortgage does seem a bit reckless on furlough, you have to sympathise with existing mortgage holders unable to remortgage, who could be forced to remain with their existing lenders through no fault of their own.
It’s a difficult situation, but ultimately it’s lenders’ jobs to calculate how risky or safe a potential borrower is, and there are serious doubts that some of these workers will remain in employment once the furlough scheme ends in March 2021.
At least those who already have a mortgage are being treated somewhat generously by the UK’s mortgage lenders, as payment holidays have been extended once again.
While we’ve discussed the nature of mortgage payment holidays before, it seems sensible to reiterate that borrowers should only take one out if absolutely necessary, as the size of their loan will mount up if they take a break from paying their loan.
I’m sure some of our readers will be concerned by last week’s news that Capital Gains Taxes are set to be reviewed, as Chancellor Rishi Sunak looks to raise some money to pay for this year’s substantial outlay.
I doubt this is the last we’ll hear about this, but it certainly seems a very un-Conservative move if it happens.
Unfortunately somebody has to pay for the difficult year we’ve had – and it’s better coming from the upper echelons of society than the bottom in my book, but I’m sure the debates on this will rumble on and on.
Clearly there’s a need to find a balance, as you don’t want to strangle investment by over-taxing people.
Ryan Bembridge, Editor, PropertyWire
