Mortgages During Covid19 (Everything You Need To Know)

In times of working from home, pay cuts and temporary layoffs, life still must have some sort of normality. What about mortgages? Can you still apply for a mortgage and purchase a home? In this blog post, we answer some common questions that our clients are asking us at this challenging time.

Has Covid-19 Put a Stop on Mortgage Applications?

Mortgages during Covid19 are still possible and here at Mortgage123, we are still processing new applications! We get mortgage applicants approval in principle in preparation for when the restrictions are lifted, and properties can be purchased.

It looks like there will still be a temporary shortage of homes for sale. Therefore, it will be essential to have approval from a lender as this puts you in a strong position when others could be viewing the same property.

Are Mortgage Application Criteria Still the Same?

No, if you were a good applicant before Covid-19 hit, you are still a good applicant! All our lenders are still working and dealing with our applications. The same criteria for lending from before Covid19 are still in force, i.e. borrowing 3.5 times income, 10% deposit for first time buyers, etc.

What if I am on the COVID-19 payment? If you have been temporarily effected by COVID-19, then lenders may still accept you at your income prior to the change. They would however want proof that you had returned to this income before they would release funds on draw-down. Even so, you would have an approval in principle. These are done on a case by case basis.

Lenders Can Be More Flexible During COVID-19

If you are applying now, you are in a very good position as lenders are more flexible at this time. Lenders are a little bit more flexible during this time. For example, if you are not able to complete a salary cert, we can get around that. You may need to borrow more than the normal 3.5 times your income known as an exception. These although in short supply are still available via some lenders. The key here is applying soon as exceptions won’t be around for much longer.

Everything is Online Now, But Still Working!

Yes, things are a little different and we must do business via scan and email, but we can still get the job done. We are very happy to talk you through the process over the phone or via email. Even if your pay has temporarily been reduced, we can help.

The best place to start though is a 15 minute phone call with one of our brokers. It is free, and you will know very quickly when and how to start the process. Alternatively you can apply online via our web site, and we will take it from there.

Mortgage Guide

Get the information you need to start your journey to buying your dream home!

Mortgage Checklist

A list of the key documents you need when applying for your mortgage.

After AIP Guide

If you have Approval in Principle, this guide will help you with the next steps.