All is not lost.
If you suspect your house hunting journey has been scuppered by a Covid-19-related job loss, there may be some light at the end of the tunnel.
A Cork mortgage expert says that some lenders, having come under public pressure, have changed their standing on restricting approvals for those on Covid-related welfare payments.
“Mortgages have been the source of much debate of late, with lenders tightening restrictions on applications and even holding back the processing of mortgages and drawdowns in some cases,” says Joey Sheahan, Head of Credit at MyMortgages.ie on the South Mall.
“But while this is true for some lenders, there are others that are very much open for business, and it’s important that those looking for a mortgage know this.”
‘It’s not all bad news’
Over the last few months, Mr Sheahan and his team have met dozens of concerned and anxious people, who have been sick with worry that their mortgage plans may now have to be put on the back burner for the foreseeable future.
“69% of respondents to our survey said they were not aware that an applicant would be considered for mortgage approval even if they are in receipt of the Wage Subsidy Scheme or the Covid-19 Pandemic Unemployment Payment.” Mr Sheahan said.
“Our experience is that we have been able to get mortgage seekers and “almost there homeowners” back on track with their mortgage applications and approvals – even if that has meant switching lenders. Over the last six weeks, we’ve seen a high volume of borrowers secure loan approval, have their loan offers issued and ultimately get funds released to complete a purchase during Covid, despite being on temporary Covid payments and /or reduced pay. So it’s not all bad news.”
Mr Sheahan also believes that buyers looking to make a purchase in the coming months could also benefit from some uncertainty in the market.
“Although the housing supply shortage has not gone away, of course, it seems that there is currently a small window of opportunity to capitalise on some good value deals, as property prices are being negotiated downward in certain cases,” he added.