28 May 2020
With a new set of covid-19 guidelines from the Government, you'll probably be wondering how this affects the housing market and the process of buying a new home.
We've teamed up with mortgage experts Metro Finance to answer some of your most frequently asked questions around mortgages, shared ownership and how covid-19 has changed the housing market.
Can I still speak to financial advisors?
Yes, our Mortgage Advisers are available as normal over the phone. As usual any documentation required is done digitally.
Does being on furlough effect my chances of getting a mortgage?
It is still possible to get a mortgage, the reduced income level can affect your borrowing capacity. Not all lenders will lend whilst on furlough.
Are there any impacts I should be aware of if I’m on furlough?
In general the amount you can borrow will be based against your furlough income, rather than your actual salary. There is no guarantee a lender will lend whilst on furlough, lenders will always try to help and will take a common sense approach to lending.
How does being self employed effect my chances of getting a mortgage at the moment?
If your business is still running during the pandemic, lenders are still actively lending. Some lenders are taking a view that income drops are likely and therefore using a percentage of your income rather than the full amount.
Are there any impacts I should be aware of if I’m self employed?
Lenders have always based the amount you can borrow on your latest years accounts, obviously this is historic income. You should think hard how the pandemic will affect your current income, be open and honest with your Mortgage Adviser.
Has the housing market been effected negatively because of covid-19?
Demand seems to have held in the Shared Ownership market, even risen.
Is there any delays in the home buying process I should be aware of?
Yes, there is currently a national backlog of surveys/valuations to the tune of around 60,000. This is the main issue causing delays in the mortgage market and home buying process.
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