Covid has had a huge impact on everyone's day to day lives over the last 6 months but people are still buying houses despite covid. Getting a mortgage is a bit trickier than normal but it is still very possible.
Here are the 3 main covid related issues affecting first time buyer applications at the moment.
Is your employer receiving the covid subsidy?
If your employer is in receipt of the covid subsidy to support your salary then you are in trouble.
Lenders will view your job as being at risk and may not give you mortgage approval. Even if you have received mortgage approval, lenders will not let you complete your sale unless your employer is no longer receiving the covid subsidy.
Prior to November the covid subsidy was visible on your payslip but the new covid subsidy scheme is different and you may be unaware that your employer is receiving any covid supports. All new mortgage applications require a letter from your employer to confirm whether or not they are in receipt of covid support.
Is your industry at risk?
A new element that lenders consider when assessing your application is the type of industry you are in and how that industry is affected by covid. Even if your employer is not receiving a covid subsidy the fact that you are working in an industry affected by covid may be enough to impact your application.
For example, a client came to us after his application was rejected by a bank. It was rejected because he worked for a car rental company and this was considered a high risk industry as it was affected by covid. In reality the company mostly rented vans to government agencies and it was performing quite well during Covid but the bank did not take this into account.
We actually managed to find a lender for this case quite quickly but it just goes to show that some lenders are more flexible than others. We have access to multiple lenders, click here to start your application.
Relocation - Remote workers
Working from home is a relatively new concept but lenders had begun to get comfortable with this before Covid. If you could prove that you were a remote worker and your employer provided you with a letter stating the same that was normally enough to satisfy a lender.
Since lockdown we have had a huge number of applications from first time buyers that wanted to move out of the cities to work remotely, often to be closer to their families and the area they grew up in.
A mortgage application from a first time buyer trying to buy a house in Limerick but currently living and working in Dublin is viewed as unrealistic by lenders as they don’t see a 2 hour daily commute as feasible but if you can work remotely this is no longer a problem… in theory.
The problem now is that many people are working from home temporarily but there is no guarantee that this is going to last. Some companies are happy that their employees are working from home but many companies haven’t decided if they want remote working to continue in the long term.
The attitude taken by lenders is that unless a very clear letter is received from your employers stating that you will be a remote worker post covid then it is unlikely that your mortgage application will be considered.
In summary if you don’t want to fall into one of the categories listed above you should be fine. Getting a first time buyer mortgage is still possible; you just have to jump through a few extra hoops. If you want to get a mortgage with us then click the link below and get started!
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