Since our last update a few months ago the mortgage market has thankfully seen an improvement with banks and brokers seeing an increase in demand for mortgages and in turn an increase in approvals from lenders.
That is not to say that the situation has returned to pre Covid-19 conditions. Many are still finding it difficult to get mortgage approval over the line.
Are the banks taking new mortgage applications?
Yes, the banks are accepting new mortgage applications; however at present none of the lenders are offering exceptions to the lending rules. This means that 3.5 times salary is the maximum that people will be offered. Nobody is offering more.
My employer is paying me through the Temporary Wage Subsidy Scheme ( TWSS). Will I be approved for a mortgage?
Applications will now be considered for people on the Temporary Wage Subsidy Scheme (TWSS). However all lenders need to be sure that borrowers can afford the mortgage they are looking to take out. In normal times lenders look at affordability when the client applies for the mortgage. In current times lenders need to ensure that the mortgage has remained affordable and will request new up to date documents prior to a mortgage being drawn down. In most circumstances the mortgage will be approved if the client is in receipt of TWSS however some lenders will hold off on the loan offer until they can see that the client has come off the TWSS and the client’s full pay is coming from the employer.
I have already been approved for a mortgage but am in receipt of TWSS.
This is an area which is causing consternation amongst borrowers. Some lenders are not allowing clients to close out a mortgage while the TWSS is still in place. The lenders in question are concerned that the employers will not be able to pay their employees full salaries once the TWSS scheme ceases, so are looking for backup information from the companies.
It’s evident that every case, client and lender is different, so if you have any queries about your own circumstances, feel free to talk to us. We deal with 6 lenders and you will have a dedicated mortgage consultant to guide you through the entire process. Call us on (01) 513 8710 or drop us an email at info@citywidefinancial.ie
Rob O’Neill
CEO Citywide Financial