The Banking & Payments Federation of Ireland has issued guidance on mortgage approval during these unprecedented times.
How might my existing mortgage approval be impacted?
Your existing mortgage approval is not affected by Covid-19. However, as you move to the next stages – a formal Letter of Offer followed by drawdown of the mortgage – you will likely be asked to confirm that your employment and income situation has not materially changed since you got your approval.
Can I get a time extension to my existing mortgage approval if needed?
Your lender may extend the period of your mortgage ’Approval in Principle’ where your circumstances have not materially changed as a result of Covid-19. This will likely be for 3-6 months, but it may vary depending on the lender’s assessment of an individual’s circumstances.
Can I expect a delay to drawing down my approved mortgage?
Your lender will facilitate drawdown of your mortgage within its normal timeframe where all the standard requirements have been fulfilled and up-to-date documentation provided. However, some delay may occur due to factors beyond the lender’s control: for example, the ability of valuers to conduct a full inspection of a property or of legal practitioners to access everything that is required for them to complete all steps.
Is my existing mortgage approval at risk due to cessation of house building activity?
No. Your mortgage approval is ordinarily valid for 6 months – possibly longer with some lenders. Should you need more time due to a delay in house completion, your lender will work with you to facilitate this as much as possible.
Is there any impact on stage payments?
Lenders are continuing to process stage payments. However, if your circumstances have changed due to Covid-19 and you are seeking to progress a stage payment, you should contact your lender to see what can be done.
Can I apply for a new mortgage today?
Yes, all lenders remain open for applications for new mortgages for First Time Buyers, Mover Purchasers and those wishing to switch their existing mortgage.
Will I need to provide more information than usual because of Covid-19?
Lenders will continue to apply the usual credit and affordability assessments to help ensure that borrowers can afford the payments on the mortgage being sought. So, you will be asked to provide information in support of this, including evidence of your employment and income situation.
See more in depth answers to these questions & information on the impacts if your situation has changed see – https://www.bpfi.ie/key-topics/mortgages-covid-19-support-faq/