3rd SEISS grant and mortgage application

Tuesday1510

Hello,
Me and my partner are just about ready to buy our first house but only have 10% deposit, we know we need 15%. 
My partner is self-employed and has a partnership business that has been running fine and has good business bank statements for 3 months which show it is back up and running as normal. 
He is entitled to take the 3rd SEISS grant due to having to buy PPE (this can apparently be the a reason to still be entitled) but we are wondering if this will impact the chances of getting a mortgage approved? We could really do with the money to boost our deposit.

Thank you.

Meh123

Hi! Personally I wouldn’t do it if you’re planning on applying anytime soon. On our application going in (santander) our MB asked for a statement regarding Covid and how we were affected and if we still were. We took the 1st/2nd SEISS but are now totally back to normal. basically taking government help right now (even if you’re entitled to it despite not necessarily needing it) is saying that you continue to be effected by the pandemic, and this is not what a lender wants to hear when you’re applying for a mortgage.
If it’s going to take you 6 months to get up to the 15% deposit amount then maybe go for it, as you’d have plenty of time after the payment to show that you’re fine but I’d speak to a MB and ask their opinion as to what the lenders are currently saying about the 3rd one as I’m sure they wouldn’t look at it favourably if you plan to apply soon.
good luck! 

FTB_crossed

If you can wait then take the grant and wait, apply for a mortgage after 6 months or so or even after taking the 4th grant.
Then you won’t be affected as much and have better prospects of getting mortgage approved. 

You will have to show that at the time of applying and till you get approved for mortgage that you are not effected by the pandemic. If you are still affected then your lender will take that into account and might offer you less than you expect.
You have got to weigh up the grant vs stamp duty.
But surely don’t apply and take the grant at the same time.