Covid and FTB

robynjur1108

Hi, I'm interested to know if anyone has an idea as to you why it is harder to get a mortgage, post lockdown, now the market opens up again. Our mortgage advisor made the comment 'your application would of been plain sailing before covid'. I'm just wondering why. I understand no one can give definite answers, but predictions/general comments would be very helpful. Thank you.

We both have secure jobs and have not been furloughed through lock down. 

520d2012

Most lenders are now not offering 90% LTV and above.
Most lenders also not taking any variable pay in to affordability such as OT and Bonus.
I had a DIP for £290k before lockdown but as banks removed products and changed affordability criteria - my options went to £260k
Not sure what line of work you are in - but it may have a impact as they suspect some industries will be hit hard in the coming months or years

haras_n0sirrah

Anything at 90% is tricky
Most lenders are not in that space so those who are limit applications by various means
hsbc - makes us do a merry dance at 8am everymorning trying to get funds
nationwide have put in restrictions to make it so that not everyone can use them (will only lend on houses, 25 year max term, no furlowed income, no bonus overtime or comission, a1 credit score)
85% and below is basically as normal - it is just at 90% you may struggle.
Also expect a queue, a very very long queue. Typically 7-15 working days to look at anything accross the board.