Mortgage lending in Covid times

[GlassOfProsecco]

Just wondering how lending has changed since covid?

I'm going through a separation & the house will need to be sold over the next 3-6 months.

And I'll need a new mortgage too.

I'm an NHS worker earning around 42K plus I have a flat which I rent out - but would prefer not to sell since it's my pension fund. And I'm 48 so the length of term will be limited.

Would appreciate any information. Thanks

If you have an nhs pension then there are quite a few lenders that will go up to 75 so you should be able to get a 25 year term if you have the deposit and meet the affordability criteria.

It'll depend how much of a deposit you have, there are fewer high LTV mortgages on the market atm. If you have 15% or more you should still have a good amount of choice.

Do you have a mortgage on the flat? If you do that will affect how much you can borrow for your main home, plus stamp duty will be very high.

Thanks, I will have more than 10-15% to put down.

My rental mortgage is only 16K, with 130K equity. I was hoping borrow" equity & juggle the finances of both places together.

Of course all of this could have changed since covid.

I am in the NHS pension scheme.

I was hoping to buy somewhere for 200-220K, using equity from sale of current house (was 70K pre-covid).

Obviously speak to a broker but I wouldn't be too concerned with those figures, they look healthy to me. It might be worth juggling around with the equity so you have a bigger deposit on the second purchase, a 15-20% deposit will get you a much better interest rate than a 10% at the moment. I'm not a broker though!

Thanks, I plan to do that - I had it all sorted out before covid but wondered if that would still apply. I'd heard all sorts about lenders requiring 40% deposits etc.

And of course interest rates have reduced, so that will be better.

My main issue is that house prices where I live are so high, but I think that will change over the next 6 months.

The market where I live was very strong, with properties going at least 10% over asking prices.

I just need to get out of the house & currently living with ex-partner after he had an affair - at desperate to sell!

No you should be ok as it stands, our buyer is using a 90% LTV so fingers crossed that'll be ok! It's 95% LTV that don't appear to have reappeared in their droves yet.

That sounds a really horrid situation, I hope you can move out and crack on with your new start ASAP!