How has the pandemic affected mortgages?

When the country went into lockdown no one knew what was happening and how things were going to turn out. This is the same for mortgage lenders.

Over the pandemic lenders have had to adjust, the mortgages they offer and their customer requirements to be eligible for a mortgage.

One of the major changes is the amount of deposit the lenders require has increased since lockdown started. Prior to then it was possible to get a mortgage with only 5% deposit, now those mortgages are very rare to find. The majority of 10% deposit mortgages also disappeared, but there are more lenders offering this mortgage again.

Income is being looked at in much more detail. Those that have been furloughed have to provide extra evidence and those currently on furlough will find it harder to use their income to get a mortgage.

Those who are self employed are having to prove their income for this year, not just from their previous tax returns.

Regularly lenders are sending out emails to mortgage adviser’s telling them of changes to their mortgages or lending criteria. It is hard to keep up with those changes. Mortgage advisers are having to spend much more time researching the best mortgages for their customers.

Find out more about Honey’s mortgage service here.