House hunters can extend their mortgage approval if they need more time to find a home due to Covid-19 restrictions.
The Banking and Payments Federation has published guidance for customers at various stages of the mortgage application process. It's published a list of FAQ's on its website to address concerns raised by people looking to apply for a mortgage, those who have approval and customers who are seeking to drawdown on a mortgage.
CEO is Brian Hayes says those who have approval can get an extension from the bank:
"If you have mortgage approval up to six months and your circumstances haven't changed, you still have your income intact and you want to go after that house ... You simply apply to your bank and you'll be extended in terms of the mortgage approval".
People who have been approved but have since had pay cuts or lost jobs can't go ahead with a sale but Brian has this advice for those people:
"We will keep on our books that application so that when you've got back on your feet again, when you've got your job back or your income has been enhanced again, then you will be able to extend the existing mortgage approval you have".
For customers who are further along in the process, the BPFI has reassured that lenders are facilitating mortgage drawdowns within the normal timeframe. However, they say that some delay may occur due to factors beyond the lender’s control.
