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Mortgage payment break and Covid-19

2020-03-25
We know that a lot of you are looking for guidance on mortgage applications currently. It can be confusing to navigate the quick changes in our economy without proper guidance.

Every aspect of society has had to adapt quickly to the challenges brought by Covid-19. And this adaption process is ongoing.

The banks are no different. As a result, there is very little clarity on how banks are handling mortgage applications right now.

That said, three lenders have recently shared some information with us on the changes they’re making to their mortgage application process.

Haven Mortgages


“Has there been a material impact in your employment and/or income as a result of Covid-19?”

This is the question Haven Mortgages will be asking of all applicants, new or existing. With current circumstances, it’s possible that this question will only be able to be answered once people return to work.

The lender has also shared that they may request information from people’s employers when they return to work asking if there are any changes to their employment. This will happen before loan approval.

If people are already at the loan offer stage, written confirmation from their employer stating that their income is not impacted by Covid-19 measures. 

Furthermore, applicants are always reminded that they have an obligation to notify their lender if their circumstances change. This obligation is in place at all stages of the mortgage application process.

Finance Ireland


Finance Ireland has also highlighted that they may be looking for additional information for mortgage applications.
 
  • For PAYE applicants, an updated payslip may be requested prior to drawdown that confirms an income level that supports the original application.
 
  • For Self-Employed applicants, updated personal current account statements could be asked for prior to drawdown confirming that income levels support the original application.
 

ICS Mortgages


The third lender to let us know how they are changing their mortgage processes during this time is ICS Mortgages

Their statement is as follows: “A review is ongoing on all pipeline loan offers, to determine the impact of Covid-19 on the borrowers’ financial circumstances. Where their circumstances have changed, we may require further information.”

Next steps for mortgage applications


It’s likely that all Irish lenders will implement similar underwriting steps in their processes as the above-mentioned three have done.

The situation is changing from day-to-day. We are in conversation with all of Ireland’s lenders and will keep updating our customers on changes.

If you were hoping to apply for a mortgage this year, don’t despair. Our advice on how to save for a mortgage is evergreen. No matter what the next period holds for us, having a deposit in hand is a powerful tool in your pocket. 

Claire Mason


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