It looks like it could get worse before it gets better.
And for mortgage brokers they are feeling the impact of the coronavirus crisis on all fronts.
The government has told home buyers and renters that where possible, they should delay moving to a new house while measures are in place to fight coronavirus.
The immediate knock-on effect of this is that the number of physical viewings and valuations which were already slowing down as a result of the lockdown, have had to stop
As a result of physical valuations not being carried out, lenders are not able to go ahead with new mortgages, hence many decided to pull their high loan to value (LTV) mortgages.
So new mortgage purchases are grinding to a halt.
Martin Reynolds, chief executive of SimplyBiz Mortgages says: ”We will see the purchase market pause as it follows government advice but there will still be opportunities within the product transfer and remortgage areas.
It is key to keep up-to-date with the criteria changes of lenders.
Nick Morrey product technical manager at John Charcoal adds: “The government can’t easily shut down an open and free market of people selling their assets.
“The [mortgage market is] slowing it down to a crawl because valuers cannot value and people cannot do home buyers reports or structural surveys.”
For brokers who want to keep helping clients but they are worried about the drop in income from a lack of new business, the government is rolling out measures to help businesses.
And it is important for brokers to stay informed about what is available from the government so they can also provide this guidance to their clients.
Fixed rate mortgages
Mr Morrey says brokers need to be in constant communication with their clients about their mortgages, particularly where their fixed rates are coming to an end.
This will reassure clients, strengthen relationships and also help to retain business.
Mr Morrey adds: “My advice to brokers is to stay in contact with your clients. Check with them; what they actually want from a mortgage and keep looking for the best deals, because lenders are pulling deals.
“They are not dropping rates as far as the rates are concerned, so keeping well-informed and your clients well-informed in what are worrying times will enable them to get the best advice.
“Most mortgage offers are valid for at least three months if not six.
"If you get an application in now, it means you are securing the best deal for your current circumstances and future needs now, if rates go up, which is possible.
"If lenders pull deals and leave only the more expensive ones, then the client gets the best possible deal.”