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Today in politics: Coronavirus and flood insurance review

Sally Walmsley
Written by Sally Walmsley

New research has shown there has been a  fall in the number of buy-to-let (BTL) mortgage deals since the start of March 2020 as a result of coronavirus, with the government today publishing details of its of flood insurance review.

Coronavirus impact on buy-to-let mortgages

There has been a significant fall in buy-to-let (BTL) mortgage deals since the start of March 2020 – revealing the impact the Coronavirus pandemic has had on the market.

Data released in the Moneyfacts UK Mortgage Trends Treasury Report shows that since the beginning of March 2020 to today there has been an overall fall of 1,304 BTL products in the market. 

In addition to this, the product choice for borrowers at 80% loan-to-value has fallen by 122 on two-year fixed deals and 134 on five-year fixed deals.

Along with the fall in the number products, there has also been a rise in interest rates on existing products since the beginning of March 2020. 

For example, the average interest rate on a two-year fixed BTL deal at a 60% LTV has increased by 0.35% and on a five-year fixed deal at the same loan to value has also increased by 0.31% in the last month.

Full details can be accessed here.

Government publishes details of flood insurance review

The Government has published the terms of reference for its flood insurance review

The purpose of the review is to “identify the reasons why people did not have sufficient insurance cover, and in some cases no insurance at all, during the November 2019 floods” and “where necessary, it will consider action relevant for future flood events.”

Key questions for the review to cover are:

  • What does the evidence tell us about the level of insurance cover held by those most recently affected by floods and the barriers they faced?
  • Does this evidence point to any systemic issues in the provision of flood insurance?
  • Does this evidence suggest any other issues regarding availability, affordability, barriers, or dissatisfaction with insurance coverage?

The aim is for a final report to be ready for publication by September.

The review is to be led by the former chair of the Association of British Insurers and former Chair of the Insurance Fraud Bureau, Amanda Blanc.

About the author

Sally Walmsley

Sally Walmsley

Sally Walmsley is the Magazine and Digital Editor for the NRLA. With 20 years’ experience writing for regional and national newspapers and magazines she is responsible for editing our members' magazine 'Property', producing our articles for our news site, the weekly and monthly bulletins and editorial content for our media partners.

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