The news of a third lockdown will certainly not have come as a surprise, but for many of us, the new restrictions will raise immediate questions. How can we manage the kids this time around? What are the home-schooling requirements? For the mortgage industry, thoughts may reflect back to the number of products on the market and how product availability will be impacted. For potential homebuyers and sellers, a key question on their minds will be how the new lockdown could affect their plans.

If the first lockdown was a movie, it was ground-breaking, memorable and certainly something we will never forget. But sequels? Well, they normally have a reputation for disappointing. So will this lockdown sequel be a real turkey, worse than the original? I’m not so sure and in fact, there are reasons for some positivity.

Open for business

Unlike the first lockdown, Britain’s housing market is very much open for business. Government guidance states that one of the valid ‘excuses’ for leaving our homes could be: “to fulfil legal obligations or to carry out activities related to buying, selling, letting or renting a residential property”. There appears to be no change for our market and that’s good news for those looking to buy or sell.

If anything, the latest lockdown could even increase or reignite the desire to move – something we clearly saw after the first lockdown. Our data then showed that one in five (18 per cent) homebuyers were looking to purchase in a more rural area because of the crisis. Those who have been desiring more space, a home office or moving to the countryside have been given the fuel once more to make those desires a reality.

More ready than ever

This clearly isn’t our first rodeo either. With the mortgage market now very much prepared for the implications of lockdown, those already in the process of their homebuying journey are likely to see far less disruption.

We know how to use Zoom or Teams, and so do our customers and families. We have been there, done that and have both the t-shirt (and / or loungewear) and IT equipment to more successfully work from home, speak to our customers and drive our businesses forward. In fact, with a market that has been experiencing unprecedented demand since the Summer, a slight cooling resulting from this latest lockdown might actually give some lenders breathing space to allow service levels to improve, while ensuring healthy mortgage availability and processing.

Unlike the first lockdown, we are less likely to see funding impacted as well. Furlough and payment holidays are all understood and lenders have processes in place to handle these enquiries effectively.

More lenders are also continuing to return to the high loan-to-value market of 90 per cent mortgages. As I write this Coventry Building Society has launched a 90 per cent product. This is positive news for homebuyers with smaller deposits, including many first-time buyers, and will only help to increase the options for a generation of consumers looking to step onto the housing ladder.

Reassurance, guidance and support

We really are in a different place to the first lockdown. So, what should we be doing and thinking to prepare ourselves for the next few weeks?

First and foremost, we will need to reassure our customers and our people. Whilst we face the difficulties of the pandemic once again, we must not lose sight of the positives and do what we can to maintain spirits. We must let consumers know that they can still move and get a mortgage, and that the support of an adviser will be vital to helping them navigate through these uncertain times in the best possible way. That will be my focus as I pitch these positive messages to the consumer press.

We will need to do all we can to support customer needs too.  Product transfers made up 25 per cent of all mortgage business in 2020. This year is already set to be one of peaks in maturing mortgages – PTs will no doubt form a key part of lending. As advisers, you will need to ensure your businesses are set up to maximise these opportunities – not just during lockdown, but as a core business strategy. Ensuring your customers have the full advice experience including protection is critical as well, not only ensuring they are protected, but to help you keep your businesses thriving during the more difficult times.

Further clarity on ongoing support will be welcome also and we will have to continue to press for assistance with the impending end of the Stamp Duty holiday to avoid a cliff-edge scenario. We will continue to lobby Government and any opportunities we all have to mention this to our local MP’s can only help to raise awareness of the issues we face.

And importantly, we must continue to be human. This is clearly a difficult period for many. Parents juggling home-schooling, key workers supporting all of us and those living alone to name a few. It’s ok to talk if you are struggling and even better to reach out as much as possible to those around you. It’s also ok not to be perfect as we deal with this. We will have to be flexible with working patterns as we perhaps manage the kids or remember to get out and exercise. We don’t have to respond to late-night emails if this is how others are choosing to manage their days.

Critically, we have hope too. It is different this time. As we enter this lockdown, we have the knowledge that the vaccines are now being rolled out. That gives us all the hope that there really is an end in sight to this crisis.

Kevin Roberts is director of Legal and General Mortgage Club