Banks to allow Covid-19 unemployed return to original mortgage applications after pandemic

People who have been approved for a mortgage, but have since lost jobs or had a pay cut, can return to their application once their situation improves.

The Banking and Payments Federation has published guidance for customers at various stages of the mortgage application process.

CEO of the BPFI, Brian Hayes, said the guidance applies to "customers who are at various stages of the mortgage application process be that someone who is thinking of applying for a new mortgage, someone who has secured a mortgage approval or indeed someone who is about to drawdown on their mortgage.”

It says that those whose circumstances have not changed, can extend their mortgage approval beyond the standard six months.

Mr Hayes said those who are not in a position to continue house hunting can pick up where they left off at a later stage.

He said: "We will keep on our books that application so when you get back on your feet again, when you've got your job back or your income has been enhanced again, then you'll be able to extend the existing mortgage approval you have."

“At whatever stage applicants may be in the mortgage process, should they have any concerns we would encourage them to read the information available on the BPFI’s website in the first instance; and if they have any further questions beyond that to contact their lender who will advise them on their particular situation.”